The International Monetary Fund said tokenization could make parts of finance faster and more transparent. At the same time, it warned that the shift could create new risks for financial stability. In its new IMF tokenization report, the agency said the overall effect remains unclear because some old risks may fall while new ones may grow.
The report said tokenization can improve issuance, trading, settlement, and asset management. However, it also said the system may move risk away from banks and into shared ledgers, smart contracts, and automated systems. That change matters because failures in code or infrastructure could affect tokenized markets very quickly.
The IMF also said tokenization may help cross border payments and expand financial inclusion in emerging economies. Still, it warned that the same process may increase volatile capital flows, speed up currency substitution, and weaken monetary sovereignty in some countries.
IMF Tokenization Report Says Tokenization Risks Could Build Faster
The IMF tokenization report said the effect of tokenization on financial stability is uncertain. It explained that atomic settlement and better transparency may reduce some traditional risks. However, faster systems and automation may create different problems that move more quickly through markets.
The report said, “The net effect of tokenization on financial stability is uncertain.” It also said, “Atomic settlement and enhanced transparency reduce some traditional risks, but speed and automation introduce new ones.” These lines show the IMF’s main concern about tokenization risks.
The report added that stress events in tokenized markets may unfold faster than in traditional systems. As a result, authorities and market participants may have less time to respond. That is one reason the IMF linked tokenization directly to broader financial stability concerns.
Cross Border Payments and Financial Inclusion Remain Part of the Tokenization Case
The IMF said tokenization may still bring clear benefits. It pointed to cross border payments as one area where tokenized systems could lower friction and improve speed. This matters in markets where transfers remain slow, costly, or dependent on many intermediaries.
The agency also said tokenization could support financial inclusion. In some emerging economies, digital infrastructure may widen access to financial services and products. Therefore, tokenized systems may open new channels for users who remain outside traditional finance.
At the same time, the IMF said these gains do not remove risk. It warned that tokenization could raise the risk of volatile capital flows, rapid currency substitution, and the erosion of monetary sovereignty. So, the report presented both the possible benefits and the risks in the same framework.
Real World Assets Show How Fast Wall Street Tokenization Is Growing
Data from RWA.xyz shows that more than $27.6 billion in real world assets, excluding stablecoins, is already tokenized onchain. That figure shows the size of the current market. It also explains why the IMF now treats tokenization as a growing part of global finance.
Market forecasts remain far apart. Boston Consulting Group said in 2022 that the tokenization market could reach $16 trillion by 2030. Meanwhile, McKinsey & Co said in 2024 that the figure may be closer to $2 trillion over the same period. Even so, both forecasts point to major expected growth.
The report also comes as Wall Street tokenization expands. BlackRock CEO Larry Fink has backed tokenization across assets such as stocks, bonds, money market funds, and real estate. That support has helped move tokenization further into mainstream financial discussions.
Tokenized Markets Face Legal and Ownership Questions
The IMF said legal uncertainty remains one of the biggest obstacles for tokenized markets. It warned that without clear rules on ownership records and settlement finality, these markets may remain “fragmented and peripheral.” In other words, legal structure may limit growth even when the technology works.
This issue affects how institutions treat tokenized assets. Markets need clear answers on who owns an asset, when settlement becomes final, and how disputes are handled. Without that legal clarity, scaling tokenization across regulated systems becomes harder.
Because of that, parts of the crypto industry are building compliance tools into tokenized products. The report pointed to solutions that try to connect blockchain systems with legal and regulatory requirements. That effort shows how the market is trying to answer the IMF’s concerns.
Smart Contracts and Compliance Standards Are Part of the Response
One example is ERC 3643, a permissioned token standard in the Ethereum ecosystem. This model allows access controls so only approved investors can hold certain tokenized assets. That structure is designed to support compliance inside tokenized markets.
On March 20, Coinbase Asset Management launched tokenized shares for the Coinbase Bitcoin Yield Fund on Base, Ethereum’s layer 2 network. Apex Group supported the launch by applying the ERC 3643 standard. As a result, token holder identity and eligibility could be checked for compliance.
Other projects also show the scale of the market. According to CryptoDep, Securitize held $3.38 billion in total value locked as of April 1, making it the largest real world assets project by that measure. Tether Gold followed at $3.35 billion, while Ondo Finance stood at $3.21 billion.
Wall Street Tokenization Moves Beyond Crypto Native Platforms
Traditional market operators are also pushing Wall Street tokenization forward. In January, Intercontinental Exchange, the parent company of the New York Stock Exchange, said it would launch a tokenization platform. The company said the platform would support 24/7 trading and instant settlement of stocks and exchange traded funds.
That move shows that tokenization is no longer limited to crypto native firms. Instead, established institutions are now building systems around the same model. Therefore, the IMF report arrives at a time when tokenization is moving deeper into traditional finance.
Taken together, the data, market activity, and legal questions explain why the IMF tokenization report focused on both efficiency and risk. The report did not treat tokenization as a simple upgrade. Instead, it described a system that may improve finance while also creating new pressure points for financial stability.
Disclosure:This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Kriptoworld.com accepts no liability for any errors in the articles or for any financial loss resulting from incorrect information.
Tatevik Avetisyan is an editor at Kriptoworld who covers emerging crypto trends, blockchain innovation, and altcoin developments. She is passionate about breaking down complex stories for a global audience and making digital finance more accessible.
📅 Published: April 3, 2026 • 🕓 Last updated: April 3, 2026
