IMF: Tokenized Finance Will Reconstruct the Global Market Architecture, Displacing Financial Intermediaries

Tokenization is redefining the global financial system by enabling changes in settlement, liquidity, and risk governance. Financial assets and liabilities are increasingly represented on programmable digital ledgers, allowing for real-time settlement and compliance. This shift is more than an efficiency gain—it is a structural transformation in finance.

The U.S. SEC is expected to lead regulatory developments in equity and debt tokenization in 2026. Tokenized assets reduce frictions in custody and settlement, offering clear benefits for asset managers and exchanges. This momentum is also creating opportunities for collaboration between traditional finance and decentralized finance (DeFi) according to TD Securities.

Tokenization introduces new risks, particularly with stablecoins. The IMF warns that stablecoins, which represent a large portion of tokenized finance, could amplify instability during market stress. Research indicates rapid settlement and algorithmic liquidations may accelerate asset sales and trigger cascading losses.

How Do Tokenized Assets Affect Liquidity and Settlement Processes?

Tokenization improves liquidity by enabling continuous trading and instant settlement. Traditional systems rely on T+1 settlement periods, but tokenized finance eliminates the need for such delays. This can free up capital for investors and broker-dealers, reducing margin pressures.

However, the absence of settlement lags also removes a buffer that traditional finance uses to manage stress. Tokenized systems can transmit liquidity strains instantly, potentially turning minor issues into major crises. The IMF recommends CBDCs as a stabilizing force, anchoring digital finance in public trust and promoting ledger interoperability.

What Role Do Central Bank Digital Currencies (CBDCs) Play in Stabilizing Tokenized Finance?

CBDCs could provide a safe, trusted foundation for tokenized assets, reducing systemic risks. By serving as a reference point for settlement and liquidity, CBDCs could help prevent fragmentation and arbitrage across platforms. The IMF emphasizes that international coordination is necessary to ensure that CBDCs function effectively in a tokenized world.

In the absence of such frameworks, tokenization risks creating price divergence between off-chain and on-chain markets. The SEC may exempt tokenized trading from the National Best Bid and Offer (NBBO) rule, which could further complicate pricing consistency.

Why Is Institutional Trust Critical for the Success of Real-World Asset (RWA) Tokenization?

RWA tokenization is growing rapidly, with the market now exceeding $27.7 billion. However, trust remains a key challenge. Platforms that vertically integrate issuance, custody, and trading reintroduce risks similar to those seen in pre-crisis traditional finance. Institutional investors demand independent oversight and transparency.

OneAsset founder Sonia Shaw advocates for modular, custody-agnostic infrastructure to support true institutional adoption. By separating roles and ensuring regulator-ready compliance, platforms can reduce conflicts of interest and single points of failure.

Meanwhile, tokenized stocks are also seeing increased demand, with a total value near $1 billion. The market for tokenized equities has grown by 2.4% in the past 30 days, indicating a shift toward broader accessibility and liquidity.

Investor interest in tokenized assets is being further fueled by products like onchain gold arbitrage, which targets retail investors with potential 20% yields. The strategy minimizes exposure to gold price fluctuations, capitalizing instead on pricing discrepancies between counterparties.