FSB warns of liquidity and maturity risks in tokenised assets

Report highlights financial stability implications if tokenised assets are widely adopted

Crypto-assets

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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