Dallas Fed warns tokenized deposits could shrink bank lending by $700 billion

Researchers at the Dallas Federal Reserve have warned that a widespread shift to tokenized deposits could drain up to $700 billion from bank lending. More rate-sensitive, faster-moving deposits would push banks toward safer assets, constraining credit availability and raising borrowing costs for businesses and consumers. The report highlights the systemic risks that tokenization technology could pose to the traditional banking sector.

Do tokenized deposits pose a genuine threat to the banking system?

Decrypt · 2h ago · Source ↗

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Dallas Fed warns tokenized deposits could shrink bank lending by $700 billion

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