BIS warns tokenized money market funds amplify traditional finance risks

The Bank for International Settlements (BIS) has warned that tokenized money market funds, which have grown 265% over the past year, amplify risks within traditional finance. According to DL News, the BIS stated in a report that the market for these funds has expanded to $9 billion and risks magnifying issues found in both conventional money market funds and stablecoins. The institution called for proactive measures to be taken before the sector poses a systemic threat.