Researchers from the Federal Reserve Board released a study outlining a framework to assess vulnerabilities of new money‑like products such as tokenized money market funds, money market ETFs, and stablecoins. The framework compares these products to traditional money market funds by examining liquidity transformation, threshold effects, money‑like status, contagion risks, and investor behavior. By mapping these characteristics, the study aims to evaluate how emerging cash‑like instruments might influence the resilience of the financial system as their uses evolve. The analysis is intended to stimulate discussion among academics, policymakers, and industry participants about the potential risks and benefits of these products.
https://www.federalreserve.gov/econres/feds/a-framework-for-understanding-the-vulnerabilities-of-new-money-like-products.htm
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