Two economists at the Federal Reserve Bank of Dallas have warned that tokenized deposits could destabilize bank funding and push credit costs higher for American households and businesses, ac
Two economists at the Federal Reserve Bank of Dallas have warned that tokenized deposits could destabilize bank funding and push credit costs higher for American households and businesses, according to an analysis published by the institution.
Economists Rosie Levy and Srini Ramaswamy argued that instant settlement capabilities could allow yield-seeking depositors to shift funds between banks far more rapidly than is currently possible. They noted that programmable deposit tokens, combined with agentic artificial intelligence, could automate those transfers, reducing the time deposits stay at any single institution and making them more sensitive to interest rate movements.
