According to CoinMeta, Federal Reserve economists warn that tokenized deposits may reduce the ability of U.S. banks to hold long-term interest rate risks, with an estimated reduction in risk tolerance of up to $700 billion. Research indicates that tokenized deposits are a manifestation of ordinary commercial bank deposits on blockchain or other distributed ledgers, capable of supporting automatic payments and programmed transactions. While tokenized deposits may increase liquidity of funds, they could also lead to customers transferring funds more quickly between banks, thereby affecting the stability of banks.