The IMF’s latest Global Financial Stability Report devotes a chapter to tokenization concluding that the delays and middlemen that make today’s markets slow and costly also act as shock absorbers. Remove them and a crisis could travel faster. For now the Fund sees little systemic risk, mainly because the market is too small to matter.
On benefits, the IMF separates the proven from the promised. Cheaper issuance, less reconciliation and the simultaneous exchange of cash and securities are already visible. Early data shows real demand for new features. More than half of tokenized stock trading happens outside US market hours and roughly 80% of trades are for less than one share. Automated margining and real time supervisory reporting remain aspirations.
There is also a reality check. Many advantages credited to tokenization are really the fruits of digitalization and achievable with conventional technology. India offers same day settlement for some stocks without a blockchain. What is distinctive is putting assets, money and automated rules on one shared platform.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
