A $700 Billion Warning: What Will Tokenized Deposits Take Away from Banks?

2026/09/05 10:00

Noriaki Yagi

A $700 Billion Warning: What Will Tokenized Deposits Take Away from Banks?

Table of Contents

The true nature of the $700 billion figure
The Disappearing "Friction"
The estimates differ.
The answer draws closer as 2027 approaches.

An analysis published on August 25 by economists Rosie Levy and Srini Ramaswamy of the Federal Reserve Bank of Dallas is quietly sending ripples through the banking industry. Their assessment suggests that tokenized deposits—which major banks are racing to develop as a countermeasure to stablecoins—could ironically undermine the banks' own core functions. It should be noted that this analysis reflects the authors' personal views rather than the official position of the Dallas Fed.

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PROFILE

Noriaki Yagi

Editor-in-chief,Iolite

While still at university, I launched a restaurant consulting business and a staffing service for the amusement sector, drawing on my experience working in the food and beverage industry, and took on the role of representative. At the same time, I began managing social media to establish my personal brand, reaching 10,000 followers within six months. In September 2021, I joined J-CAM Inc., where I worked on YouTube and Twitter operations before being appointed Editor-in-Chief in April 2022. In March 2023, I founded Iolite.

A $700 Billion Warning: What Will Tokenized Deposits Take Away from Banks?

Iolite Vol.21

Iolite Vol.21