The Bank for International Settlements (BIS) has raised concerns over the rapid growth of tokenized money market funds, which have surged by 265% over the past year to $9 billion. According to the BIS, these funds are exacerbating traditional financial risks by combining vulnerabilities from both conventional finance and the cryptocurrency sector. Key risks identified include liquidity mismatches, stablecoin run risks, regulatory gaps, and systemic interconnectedness. The BIS report calls for urgent regulatory action, recommending enhanced liquidity requirements, the establishment of clear regulatory frameworks, and international coordination to mitigate the potential for cascading failures in the financial system.