-
The Financial Stability Implications of Tokenized Investment Funds
From libertystreeteconomics.newyorkfed.org
Tokenized investment funds, like their traditional counterparts, engage in liquidity transformation by offering liabilities that can be redeemed on demand and at par while investing in a pool of less liquid assets, thereby making the funds prone to run risk. Tokenization might change the incentives of investors to redeem their shares with the fund that, in turn, could entail benefits for or risks to financial stability. Investors have traditionally treated investment funds as cash management vehicles and a store of value. When capital is needed elsewhere, the shares are typically redeemed for cash directly with the ... (full story)
- Comments / Top
- Subscribe
-
Related Stories
Bank chiefs in London are calling for greater policy clarity and stability amid fears that looming tax hikes in the forthcoming U.K. budget could hit the financial services sector. Speaking with CNBC’s Steve Sedgwick and Ritika Gupta in London’s Canary Wharf district on Wednesday, CEOs from Barclays, Citi and J.P. Morgan said the U.K. had successfully ...
The U.S. Census Bureau and the U.S. Department of Housing and Urban Development jointly announced the following new residential sales statistics for August 2025. Sales of new single-family houses in August 2025 were at a seasonally-adjusted annual rate of 800,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of ...
Real gross domestic product (GDP) increased at an annual rate of 3.8 percent in the second quarter of 2025 (April, May, and June), according to the third estimate released by the U.S. Bureau of Economic Analysis. In the first quarter, real GDP decreased 0.6 percent (revised). The increase in real GDP in the second quarter primarily reflected a decrease in ...
