According to CoinDesk, two economists from the Dallas Fed estimate that if tokenized deposits increase depositors’ sensitivity to interest rates by 10%, U.S. banks’ capacity to hold long-term interest rate risk could decrease by about $700 billion.

Another scenario shows that if tokenization leads to a 10% early outflow of deposits from banks, banks’ ability to absorb long-term loan and securities interest rate risk could decrease by about $580 billion.