The recent report by the Federal Reserve of Dallas states that monetized deposits are expected to increase the efficiency of payments, but may also change the financial structure on which banks lend. Once clients are able to move their funds more quickly to higher-yielding accounts, the stability of bank deposits may decline and long-term loan allocation space may be reduced.

The flow of deposits has accelerated

The report indicates that distributed booking technology is promoting real-time settlement infrastructure development. Unlike stable currencies such as USDT, USDC, monetized deposits are usually within the regulatory framework and interest can also be paid.

At the same time, however, the report emphasizes that the combination of real-time settlements, smart contracts and proxy AI may make it easier for depositors to quickly allocate funds between different banks in pursuit of higher returns. The costs of friction, which in the past supported “ sticky deposits”, may have decreased as a result.

$70 billion.

The Federal Reserve of Dallas measurements suggest that if the sensitivity of deposits to changes in interest rates increases by 10 per cent, the ability of the banking system to absorb interest rate risk may be reduced by about $70 billion by a 10-year equivalent.

The author also estimates that the ability of the banking system to effect a term conversion could be reduced by about $58 billion if the average time-weighted period of deposit is reduced by 10 per cent. The term conversion refers to loans of longer duration supported by bank deposits that are readily available.

Multi-bank roll-out pilot

The report suggests that if banks wish to maintain the current lending structure, they may need to rely more on term debt financing than on traditional deposits. This would bring the source of financing for lending operations closer to non-soldier financial institutions and could increase the cost of financing for enterprises and consumers.

  • In October 2025, Custodia and Vantage launched the U.S. Currency Deposit Network.
  • In February 2026, Barclay studied tokenization deposits and stabilization payments
  • March 2026, BMO United CME Group, Google Cloud advanced round-the-clock cash settlement

Additional information:Swift started a pilot in July of this year, allowing 17 global banks to transfer monetized deposits in off-business hours, but the final settlement still relies on the traditional payment system to be completed within the operating time.