BIS: Tokenization Strengthens Crypto-TradFi Links

BIS: Tokenization Strengthens Crypto-TradFi Links
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The Bank for International Settlements (BIS) highlights how tokenizing real-world assets on blockchains is bridging crypto and traditional finance. This trend could reshape DeFi infrastructure and regulatory challenges.

  • Tokenization of RWAs is erasing DeFi's 'self-referential' nature, integrating it with TradFi.
  • BIS warns of unpredictable systemic risks if DeFi expands into banking and insurance sectors.
  • Stablecoins' role in DeFi growth and their instability require urgent regulatory scrutiny.
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