IMF urges tighter settlement rules as tokenized assets could spread crypto shocks and speed market stress

The IMF said tokenization — the process of representing traditional assets on blockchain platforms — could import crypto-sector risks into global financial markets, with potential to amplify volatility through automated markets and smart contracts ^{[1] [2]}.

The fund warned that faster, near-instant settlement enabled by tokenized finance may remove traditional time buffers and could accelerate market crises, urging central banks and regulators to build secure settlement frameworks to anchor digital systems ^{[1] [3]}.

Report authors described tokenization as a structural change with large growth potential and said its adoption will require policy and operational shifts across the financial system to manage new vulnerabilities ^{[3] [4]}.

The IMF called for proactive regulatory attention and robust settlement safeguards to limit the transmission of crypto risks as tokenization scales ^{[1] [3]}.