SOFR Jumps to 3.85% from 3.62%; Fed Funds Rate at 3.88%

The parallel move in SOFR and the effective fed funds rate suggests the spike reflects a broad, system-wide funding shift rather than an isolated repo-market dislocation, since the two rates normally trade within a few basis points of each other. Because SOFR underpins a large share of floating-rate credit, including tokenized Treasury and private-credit products, a jump of this size feeds quickly into the cost of leverage across crypto and RWA lending desks. Whether the gap between the two rates stays this wide, or compresses back toward its usual spread, is the open question.