Tokenized deposits may raise US credit costs: Dallas Fed

The Dallas Fed's warning reframes tokenized deposits from a convenience play to a structural risk for bank funding. If these deposits prove flighty in stress, lenders may lean on pricier backstops, and that cost would ripple into loan pricing for households and firms. The key tension is whether the efficiency gains of tokenization outweigh the fragility it may introduce. Watch for how banks price liquidity buffers and whether regulators nudge funding composition rules in response.