Share this article
IMF warns tokenization could bring crypto risks into global financial markets
Tokenization could amplify volatility through automated markets and smart contracts, the report said.
Apr 6, 2026, 9:17 a.m.
What to know:
- Tokenization could reshape finance by enabling instant settlement and cutting out intermediaries, and introduces new risks that regulators are not yet equipped to manage, the IMF said.
- Tokenization could amplify volatility through automated markets and smart contracts, the report said.
- The IMF called for clearer legal frameworks and stronger global coordination, warning that tokenized assets moving instantly across jurisdictions could complicate oversight and deepen financial fragmentation in the absence of proper regulation.
The IMF says the “atomic settlement” that tokenization brings to the financial world could lower counterparty risk and force firms to manage liquidity in real time.
“Stress events are likely to unfold faster, leaving less time for discretionary intervention,” the report reads. “Therefore, ensuring stability requires that tokenized asset management remains anchored in safe settlement assets, legally recognized finality, and robust governance arrangements.”
The report points to stablecoins — tokens whose value is pegged to a fiat currency — as a key bridge between crypto and traditional finance. These could become widely used settlement assets across tokenized platforms, the report said.
