IMF warns tokenized markets could amplify financial risks
The IMF says tokenized financial markets are expanding but remain small relative to traditional markets, with weak interoperability, legal uncertainty and a shortage of accepted settlement assets limiting growth. Tokenized RWAs totaled about $65 billion in July, compared with roughly $300 trillion in global capital-market assets; repos account for most tokenized trading. Tokenized equities offer 24/7 access and fractional ownership, and overnight trading may provide price signals, but they are less liquid and about 1.5 times as volatile as traditional stocks. The IMF warns that growing links and leverage could amplify fire sales, liquidity runs and contagion, though systemic risks remain limited for now. It calls for clearer rules, interoperability and safeguards.
