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Growth of Asset Tokenization on Blockchains Could Lead to Greater Risks to Financial Stability: Bank of England

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Growth of Asset Tokenization on Blockchains Could Lead to Greater Risks to Financial Stability: Bank of England

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That increasing size could pose risks for the wider financial environment, the bank said. The boom could “increase the interconnectedness of markets for crypto assets and traditional financial assets (since they are represented on the same ledger); and create direct exposures for systemic institutions,” the report said.

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