A demand for tokenized deposits will have an impact on the traditional banking system. Nations provide deposit insurance to boost local economies by subsidizing deposits and lending at local banks. Tokenizing insured deposits can destabilize this system by motivating savers to buy the largest and most fungible deposits, concentrating assets and risk in a few institutions, and forcing their regulation as de-facto CBDCs. Alternatively, regulators are proposing that stablecoin reserves should go into central bank cash accounts- the safest and most liquid storage. However, this makes the money unavailable in the real economy and is economically destructive. These scenarios create a need to "sweep" money into more productive uses.