IMF warns tokenisation gains come with risks

The International Monetary Fund said tokenisation could improve efficiency in finance but warned it introduces new risks that may impact financial stability.

The agency noted that while tokenisation enables faster settlement and greater transparency, it also shifts risk to smart contracts and shared ledger systems, where failures could spread quickly.

“The net effect of tokenisation on financial stability is uncertain,”

The IMF said, adding that increased speed and automation may amplify market stress during disruptions.

The report highlighted benefits for emerging markets, including faster cross-border payments and improved financial inclusion, but warned of risks such as volatile capital flows and currency substitution.

The IMF also raised concerns about the potential erosion of monetary sovereignty if tokenised assets become widely adopted across borders.

Tokenised real-world assets have grown to $27.6 billion, with forecasts ranging from $2 trillion to $16 trillion by 2030, reflecting strong industry momentum.

Major financial institutions including BlackRock and Intercontinental Exchange are advancing tokenisation efforts, with projects spanning funds, equities and post-trade infrastructure.

However, the IMF cautioned that legal uncertainty around ownership and settlement could limit adoption, leaving tokenised markets fragmented without clearer regulatory frameworks.