Tokenized Deposits Threaten Bank Lending

DallasOne paper puts $700 billion capacity at risk.

Dallas Fed economists say tokenized deposits threaten funding banks rely on for long-term loans.

Banks profit from slow, sticky deposits; instant money lets savers chase yield in seconds, Brazil’s Pix data already show.

United States banks are already piloting tokenized deposits, with no funding-stability rules yet written.

Sources: CoinDesk