Overview
- The IMF released a public explainer on X that frames tokenized finance as a structural change already shaping policy debates and cross‑border markets.
- Researchers cited by the IMF report measurable savings from programmability, near‑instant settlement and more efficient collateral use.
- Faster, automated execution could intensify volatility by removing human time buffers and increasing the likelihood of flash‑crash‑style drops.
- Interdependent smart‑contract chains may let small malfunctions cascade across platforms, turning local disruptions into wider shocks.
- The IMF cautions that incompatible platforms could fragment liquidity and notes that growing institutional products, including BlackRock’s tokenized Treasury fund surpassing Franklin Templeton’s, are drawing governments toward a more active role.