All terms RiskStart here

Interest Rate Risk

Interest rate risk is the risk that changes in market interest rates affect the value or attractiveness of an investment. It is particularly important for bonds and other fixed income assets.

Why it matters to you

Tokenized Treasuries and bonds remain exposed to fixed income market dynamics. If market interest rates rise, existing fixed rate bonds may become less attractive relative to newly issued securities offering higher rates, which can reduce their market value. Tokenization does not remove that relationship.

Terms that sit next to this one

Tokenized Treasuries
Tokenized Bonds
Yield
Market Risk
Maturity

Where this comes up

An RWA Pays 10% a Year. What Happens if the Asset Falls 20%?8 min
When you’re looking at a tokenized investment paying 10% a year, it’s easy to picture what that income could do for you. Put in $20,000, and you could receive $2,000 over the year.

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