Tokenizing loans by pooling and making them liquid can reduce the risk of bank runs by allowing continuous access to funds, potentially democratizing lending beyond traditional banks to include private equity, corporations, and retail participants.
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Could tokenized loans stop bank runs forever?Added:
Um, and yeah, we're seeing some of this.
Where how do you take like loans, pull them together, and then tokenize them in a way that you can now make them liquid?
So, all of a sudden, it makes it so that the chance of a bank run is like way less because you can make these loans liquid kind of all the time.
Obviously, there's a lot of maturing in this market to happen. There's risks in lending, but everybody should be able to lend. You know, why why is it only this thing that banks do? Like private equity lends, of course. They take their own set of risks. Corporate bridge take their own set of risks. Governments take their own set of risks. Retail take their own set of risks. Everybody should be able to participate in this.
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