IMF warns policy choices will define tokenised finance future
Global policymakers face key decisions as tokenisation reshapes payments, markets and the future of financial infrastructure.
The International Monetary Fund has warned that policy choices made today will shape whether tokenised finance strengthens or fragments the financial system.
In a new blog post, IMF Financial Counsellor Tobias Adrian said tokenisation should not be viewed only as a technological upgrade for faster settlement, cheaper payments and programmable assets.
When financial assets and liabilities move onto shared digital ledgers, processes that are currently sequential, including execution, clearing and settlement, can happen simultaneously through software.
The IMF said this could reduce costs, improve efficiency and enable new forms of programmable finance. However, it could also shift risks away from traditional financial institutions and towards platforms, service providers and market infrastructures.
Related IMF research highlights several possible settlement assets for tokenised finance, including tokenised bank deposits, stablecoins and tokenised central bank reserves.
Each model raises different policy questions around liquidity, financial stability, private-sector innovation and the role of public money.
The IMF said the long-term success of tokenisation depends on clear policy frameworks, safe settlement assets, robust governance of code, legal certainty and international coordination.
It also stressed that policymakers will need to address cybersecurity, interoperability and oversight of smart contracts as tokenised markets develop.
Why does it matter?
Tokenisation could change how financial assets are issued, transferred and settled, making finance faster and more programmable. Yet the IMF warns that efficiency gains alone do not guarantee stability. If tokenised markets develop across incompatible platforms, weak settlement assets or poorly governed smart contracts, the result could be fragmentation and new systemic risks. The policy challenge is therefore to build rules and infrastructure that support innovation while preserving trust, legal certainty and financial stability.
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