The IMF says tokenization could compress multi-day settlement into near-instant transactions but warns fragmented standards may create new systemic risks.
Tokenization News
The International Monetary Fund (IMF) said on July 2 that tokenization could fundamentally change how financial markets operate, in one of the strongest endorsements of blockchain-based infrastructure from a major global policy institution.
Tobias Adrian, the IMF's financial counselor and director of its Monetary and Capital Markets Department, published a blog on July 2 outlining how bringing assets, settlement, and recordkeeping onto a shared ledger could compress the current multi-day settlement process into near-instant transactions.
Risks Shift Toward Underlying Infrastructure
Adrian said tokenization moves risk away from traditional financial intermediaries and toward the infrastructure that supports tokenized markets, including smart contracts, distributed ledgers, and third-party service providers. Without common standards and coordinated regulation across jurisdictions, tokenized financial markets could splinter across incompatible platforms, creating new sources of systemic risk.
The IMF's assessment came as financial institutions accelerated their own efforts in the space. The Clearing House, whose owners include JPMorgan Chase, Bank of America, and Barclays, reportedly plans to launch a tokenized deposit network in early 2027. The network would keep deposits within the regulated banking system while enabling faster, programmable payments.
Research published by PwC found that tokenization could address longstanding inefficiencies in traditional finance, including payment settlement and the transfer of asset ownership. A separate report from Moody's, published in May 2026, found that traditional financial institutions are actively preparing for a shift toward tokenized finance.
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Regulators Race To Define Tokenized Finance
Adrian said policymakers have a narrow window to shape how tokenized markets develop. He argued that decisions on settlement assets, governance, interoperability, and the role of central banks will determine whether tokenization makes the financial system more efficient or introduces new risks.
In the US, the Securities and Exchange Commission (SEC) has moved to clarify how existing securities laws apply to tokenized assets rather than building a separate regulatory framework from scratch. The agency has also signaled it is considering an innovation exemption that would allow market participants to test blockchain-based trading platforms for tokenized securities while a longer-term regulatory framework is developed.
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