The Dallas Fed research points out that while tokenized deposits can improve payment and settlement efficiency, instant settlement, smart contracts, and AI agents may also make it easier for depositors to chase higher yields across different banks, reducing deposit stability and weakening banks' ability to use short-term deposits to support long-term loans. The study estimates that if deposit sensitivity to interest rate changes increases by 10%, the banking system's capacity to bear interest rate risk would decrease by approximately $700 billion (10-year equivalent). If the weighted average maturity of deposits shortens by 10%, the banking system's maturity transformation capacity would decrease by about $580 billion. If banks wish to maintain their current loan structures, they may need to rely more on higher-cost long-term debt financing, which could drive up credit costs for businesses and consumers. (Decrypt) https://(wublock123.com)/news/news-67262