Dallas Fed warns tokenized deposits could slash

By Michael FawnThe Federal Reserve Bank of Dallas (Dallas Fed) has issued a stark warning that the widespread adoption of tokenized deposits could slash U.S. banks’ lending capacity by hundreds of billions of dollars. According to research from Dallas Fed economists Rosie Levy and Srini Ramaswamy, this emerging financial technology threatens the stability of bank funding.The economists’ analysis, published on August 25, 2026, models a scenario where tokenized deposits make savers jus