The International Monetary Fund (IMF), in a new report on the tokenization trend, which is increasingly discussed in the financial world, emphasized that this technology offers both great opportunities and serious risks for which existing regulatory frameworks are not yet ready. Tokenization, which refers to the representation of real-world assets on a blockchain, is said to be able to fundamentally transform not only crypto markets but also the traditional financial system.
According to the report, tokenization can provide a significant increase in efficiency in the financial system thanks to its "atomic settlement" structure, which enables transactions to be completed instantly. While transactions today often take place through intermediaries and with certain delays, this process can be completed almost instantly in blockchain-based systems. This reduces counterparty risk while also forcing firms to manage liquidity in real time.
Tokenization accelerates finance but also increases risks
The IMF points out that this speed can bring new vulnerabilities. It is stated that developments in the markets can occur much faster, especially during periods of stress, leaving less time for intervention. The report emphasizes that to maintain financial stability, tokenized assets must be based on secure consensus mechanisms, possess legally recognized certainty mechanisms, and be supported by strong governance structures.
Stablecoins stand out as a key element that can bridge the gap between traditional finance and the crypto ecosystem. These digital assets, whose value is pegged to fiat currencies, could become a widespread payment and consensus tool in tokenized markets. However, the IMF underlines that the reliability of stablecoins largely depends on their reserve structures and repayment mechanisms. Therefore, it is noted that sudden outflows could occur during market stress, creating systemic risk.
The report also warns that automation and smart contracts could increase market volatility. In particular, the automatic triggering of margin calls or liquidation processes could accelerate selling pressure during downturns. It is stated that such dynamics have been observed in crypto markets before, and similar effects could occur in tokenized asset markets. Another significant risk area is cross-border transactions. The ability of tokenized assets to move instantly between different countries complicates regulatory processes and can trigger problems such as capital outflow and currency substitution, especially in developing economies. According to the IMF, this could deepen fragmentation in the global financial system. Therefore, the organization calls for the creation of clearer legal frameworks and stronger coordination between countries. Otherwise, it is stated that the efficiency increase promised by tokenization could bring new risks if it progresses uncontrollably. On the other hand, sector data shows that tokenization is already growing rapidly. According to DeFiLlama data, the total value of real-world assets represented on the blockchain has exceeded $23 billion. Excluding stablecoins, the majority of these assets consist of tokenized gold and money market funds.
