Tokenized Deposits Could Drain $700 Billion From Bank Lending, Dallas Fed Warns

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Tokenized Deposits Could Drain $700 Billion From Bank Lending, Dallas Fed Warns

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A shift toward faster, more rate-sensitive deposits could push banks into safer assets, constrain lending, and raise borrowing costs, Dallas Fed researchers said.

A shift toward faster, more rate-sensitive deposits could push banks into safer assets, constrain lending, and raise borrowing costs, Dallas Fed researchers said.