The utilization of tokenized US Treasurys in leveraged trading escalates risk factors across crypto markets. The US Treasury cautions about the potential volatility of these tokenized assets.
Moody’s report emphasizes heightened risks associated with tokenized liquidity funds, indicating that while these offerings are low-risk, they are not devoid of risk, particularly regarding the leveraged trading implications.
Trading platforms like Deribit and Crypto.com are incorporating tokenized US Treasurys, linking them to leveraged trades, complicating the risk landscape and potentially leading to more significant financial market impacts.
Leave a Reply