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Tokenization · U.S. ·

IMF confirms tokenization could transform settlement and financial stability

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The global lender says blockchain-based finance could streamline markets but warns that fragmented standards and regulations may create new systemic risks.

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The International Monetary Fund (IMF) says tokenization could fundamentally reshape how financial markets operate, marking one of the strongest acknowledgments yet from a global policymaker that blockchain-based infrastructure is moving into the financial mainstream. In a blog published Thursday, Tobias Adrian, the IMF’s financial counselor and director of its Monetary and Capital Markets Department, said tokenization is more than a niche crypto innovation. Adrian also warned that tokenization shifts risks away from traditional financial intermediaries and toward the underlying infrastructure, including smart contracts, distributed ledgers and service providers. The report comes as financial institutions accelerate efforts to integrate tokenization into traditional markets.

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