Odaily Planet Daily report: Researchers at the Federal Reserve Bank of Dallas (Dallas Fed) stated that tokenized deposits and 24/7 instant blockchain transfers could undermine bank liquidity and limit their ability to issue long-term loans. The study was authored by Rosie Levy and Srini Ramaswamy.
Research indicates that approximately 80% of the $7 trillion maturity risk borne by U.S. banks is supported by the maturity characteristics of traditional deposits. If the weighted average maturity of deposits shortens by 10%, the banking system’s maturity transformation capacity would decrease by approximately $580 billion, potentially increasing liquidity risk and outflow pressures.
Kula co-founder Chris Turner stated that token transfer speed does not equate to the legal settlement of underlying financial claims. While tokens can be transferred across a blockchain network in seconds, payments, ownership, and legal claims still rely on banks, custodians, clearing systems, and regulatory registries to complete settlement. (Bitcoin.com News)