Deutsche Bank Says Tokenized Cash, Collateral Could Reshape Financial Markets
JH Kim
Summary
- Deutsche Bank said tokenized cash and collateral could reshape the structure of financial markets.
- It said tokenization could drive broader changes across financial markets by enabling 24-hour trading, near-real-time settlement and more efficient funding.
- The bank said tokenized money market funds (MMFs) are growing rapidly and that tokenization could also expand the intraday repo market and affect the structure of key US interest-rate benchmarks.
Forecast Trend Report by Period
Deutsche Bank said tokenized cash and collateral could reshape the structure of financial markets.
Walter Bloomberg reported on July 1 that the bank sees tokenization driving broader changes across markets by enabling 24-hour trading, near-real-time settlement and more efficient funding.
Deutsche Bank also said tokenized money market funds, or MMFs, are growing rapidly.
The bank added that tokenization could reduce banks' reserve balances and expand the intraday repo market. Over the longer term, it said, the shift could also affect the structure of key US interest-rate benchmarks.
JH Kim
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