Tokenization: The IMF recognizes the gains, but warns of the risks

Faster finance, but not without risks. The International Monetary Fund (IMF) recognizes the possible gains from tokenization, which involves representing financial assets on programmable digital ledgers. In its October 2026 financial stability report, however, it emphasizes that these markets remain fragmented. Their development can also accelerate the spread of financial tensions.

Tokenization: Concrete uses, still fragmented markets

In an analysis published on October 8, accompanying its financial stability report, the IMF describes the benefits of a common infrastructure for registering and transferring assets. Operations currently distributed between several intermediaries can be coordinated on the same register. Result: fewer accounting reconciliations and more automation.

Interest appears particularly in exchanges of tokenized shares. More than half of the transactions on these markets take place outside traditional hours. And in the sample studied, around 80% of orders concern less than one share. These observations show a demand for extended hours and small investments.

However, buyers and sellers are spread across multiple networks and platforms. This dispersion reduces liquidity, that is to say the ease of trading without significantly moving the price. It also contributes to price differences and higher volatility than traditional markets.

The IMF therefore identifies four conditions for developing these markets: legally recognized rights, clear rules, infrastructures capable of communicating with each other and secure means of settlement. A technically transferable token is not enough: its holder must know the rights they have and the remedies available.

Automated finance can also accelerate crises

Speed has a double effect. Simultaneous settlement of the asset and its payment reduces the risk that one party delivers without receiving the consideration. On the other hand, automation can accelerate forced sales when prices fall and guarantees become insufficient.

In its “Tokenized Finance” note, published in April 2026, the IMF already highlighted that episodes of tension could unfold more quickly. The authorities would then have less time to intervene. Risks are partly shifting towards software, shared infrastructures and their governance mechanisms.

The consequences can also extend beyond financial markets. In emerging economies, more accessible cross-border payments provide opportunities for inclusion. But the rapid circulation of capital and adoption of foreign stablecoins can weaken local currencies, particularly when trust in them is low.