IMF says tokenization could transform settlement and financial stability
The IMF says tokenization could significantly change financial markets by moving assets, settlement, and recordkeeping onto shared ledgers, potentially reducing multi-day settlement to near-instant transactions. It views tokenization as a mainstream financial infrastructure shift, not just a crypto niche. The IMF also warns that risk would move from traditional intermediaries to underlying technology such as smart contracts, distributed ledgers, and service providers. Without common standards and coordinated regulation, tokenized markets could fragment across incompatible platforms and create new systemic risks. The IMF’s view matches growing industry activity, including plans for tokenized deposit networks and research showing tokenization may improve payment settlement and asset transfer. Regulators now face a narrow window to decide rules on settlement assets, governance, interoperability, and central bank roles. In the U.S., the SEC is clarifying how existing securities laws apply to tokenized assets and is considering an innovation exemption for blockchain-based trading tests.
