FSB warns of liquidity and maturity risks in tokenised assets
Report highlights financial stability implications if tokenised assets are widely adopted
Tokenisation of financial assets could create liquidity and maturity risks similar to those in traditional banking, a report from the Financial Stability Board has said.
The report, published yesterday (October 22), says a liquidity or maturity mismatch could arise if a token’s convertibility or settlement timeline differs from the underlying asset’s.
It says that although a tokenised asset might be redeemable at any time, the underlying asset might have a different liquidity or maturity profile
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