IMF Says Tokenisation Could Transform Finance but Warns of New Risks

The International Monetary Fund (IMF) has said that tokenisation of assets could significantly improve efficiency in financial markets, while also introducing new risks that regulators must address. The IMF said in a recent report that tokenisation can make processes such as settlement and ownership transfer easier, lowering costs and making things clearer. However, it also warned that the rapid adoption of tokenised systems could pose challenges related to financial stability, governance, and regulatory oversight across global markets. The findings highlight the growing need for policymakers to adapt to advancing financial technologies.

Global Body Calls for Stronger Oversight of Tokenised Markets

The report notes that tokenisation involves representing real-world assets such as securities or real estate on blockchain networks, enabling faster and more efficient transactions. This could help to cut down the role of middlemen and make traditionally illiquid markets more liquid. Simultaneously, the IMF also warned that if financial systems and blockchain infrastructure become more connected, it could make systemic risks worse if they are not managed correctly.

“The net effect of tokenisation on financial stability is uncertain,” the IMF said in a 23-page report on Thursday, adding that “atomic settlement and enhanced transparency reduce some traditional risks, but speed and automation introduce new ones.” The IMF stressed that while the technology makes things run more smoothly, it also introduces new weaknesses that regulators need to keep a close eye on.

The financial institution stressed that even though the technology makes things run more smoothly, it also adds new weaknesses that regulators need to watch closely. It noted that without clear legal frameworks around ownership records and settlement finality, tokenised markets risk becoming “fragmented and peripheral.”

The discussion comes as tokenised real-world assets continue to gain traction globally. According to data from DeFiLlama, the sector has grown by roughly 66 percent in 2026, reflecting rising institutional interest in bringing traditional financial instruments such as bonds, credit products, and commodities onto blockchain networks. The rapid growth shows that more and more people see tokenisation as a way to connect traditional finance with decentralised systems.

As adoption speeds up, governments will need to deal with new problems that come up to make sure that the benefits of tokenisation are realised without putting the stability of the economy at risk.