Key Highlights
- The IMF said tokenized finance could make financial crises happen faster because transactions are automatic and run 24/7.
- Real-world tokenized assets (RWAs) have reached about $27.5 billion, mostly in U.S. Treasury products.
- Major firms like BlackRock and JPMorgan are already testing tokenized systems.
The International Monetary Fund (IMF) said tokenized finance could make financial crises happen faster in markets around the world.
In a report published on April 2 2026, the IMF said tokenization is not just a small improvement but a major change in how the financial system works.
Tokenization allows transactions to occur automatically through code-based contracts, which reduce the reliance on banks or any other middleman. The organization said that this speed and automation could make financial shocks spread faster, leaving regulators less time to respond.
Growing adoption of tokenized assets
According to the IMF, tokenized finance is already moving beyond theory. Tokenized real-world assets, or RWAs, have reached approximately $27.5 billion in early April, according to data from rwa.xyz. More than $12 billion of this is in the U.S Treasury products, with other parts in commodities and loans, while equities and venture assets remain relatively small.
This suggests that adoption is primarily driven by institutions seeking yield-bearing, fixed-income products rather than retail investors.
How tokenization could reshape markets
The report also explained that tokenization changes how people trust the financial markets. Instead of relying on human intermediaries to process and verify trades, smart contracts and shared digital ledgers handle settlement continuously, 24 hours a day.
While this can reduce some traditional risks, such as delays and errors in manual processing, it also removes natural protections that slow the spread of financial stress. For instance, automated processes, like real-time margin calls, could intensify liquidity problems if markets become volatile.
The IMF also highlighted risks tied to technology and system design. Errors in smart contracts or infrastructure could affect multiple participants at once. Different token platforms may follow different rules, which could make it harder for markets to work together.
Cross-border coordination may also be difficult as stablecoins, tokenized deposits, and central bank digital currencies compete for use in payments and trades.
Firms testing tokenization and future risks
Several major financial firms are already testing tokenized systems. BlackRock Inc. and JPMorgan Chase & Co. are already running live pilots.
Nasdaq has sought U.S. Securities and Exchange Commission (SEC) approval to trade tokenized stocks on regulated venues, and the New York Stock Exchange is building a blockchain-based trading platform for tokenized equities and exchange-traded funds.
In the UK, UK Finance has launched live pilots involving at least six of the country’s largest banks.
The IMF concluded by outlining three possible future scenarios for tokenized finance:
- A coordinated system anchored by central bank digital currencies,
- A fragmented patchwork of national platforms,
- A system dominated by private stablecoins with weaker public protections.
The organization urged regulators to manage structural risks and clarify the legal status of tokenized assets as soon as possible.
“Achieving this outcome requires policymakers to engage proactively with the structural implications of digital transformation, rather than respond reactively to its manifestations,” the report stated.
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