IMF warns tokenization may amplify market shocks, urges global standards
IMF warns tokenization could speed market crises while cutting costs. The Fund calls it a structural shift in market plumbing, not a minor efficiency tweak.
Atomic, 24/7 settlement can compress stress events. Regulators may not keep up, the report says. IMF report, Bloomberg coverage.
The IMF expects the biggest shift inside regulated finance. Banks, FMIs, and asset managers are piloting tokenized rails. RWAs stand in the mid‑tens of billions, with firms like BlackRock and JPMorgan testing pipelines to boost fee income and smooth trading, Bloomberg reports. Source.
On DEXs, Hyperliquid now sees more volume in tokenized commodities than in digital assets. Tokenized oil has entered the top five most liquidated instruments multiple times. NewsBTC.
On CEXs, Binance added Gold (XAU) and Silver (XAG) futures. Both climbed into the top five by volume on Binance Futures. Crude oil benchmarks CL and BZ posted $760 million and $358 million in volume. NewsBTC.
IMF flags four main risks:
- Interoperability and fragmentation across siloed chains and platforms
- Instant settlement and automated margin calls that amplify sell cascades
- Code and infrastructure failures from smart‑contract bugs, oracles, or opaque governance
- Macro and EM risk as dollar‑pegged stablecoins weaken local policy tools
IMF report
The upside, per the Fund: lower settlement frictions, 24/7 liquidity, clearer collateral chains, and gains in cross‑border payments and inclusion. Source.
What the IMF wants:
- Safe settlement assets such as central bank money and wCBDCs
- Clear legal treatment of tokenized claims
- Common standards for finality and interoperability
- Upgraded crisis‑management tools for 24/7 markets
- Transparent governance of code, including upgrades and kill‑switches
- Strong cross‑border coordination to avoid fragmented, peripheral markets
IMF report
