According to CoinMeta, tokenized deposits have raised concerns that they could reduce the long-term lending capacity of U.S. banks by $580 billion. According to a research paper published on August 25 by economists Rosie Levy and Srini Ramaswamy from the Federal Reserve Bank of Dallas, the widespread adoption of tokenized deposits may shorten the duration for which customers' funds remain in banks and make these deposits more sensitive to interest rates. The study indicates that these two effects could weaken banks' ability to use deposits to finance long-term assets.