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CoinTelegraph • October 8th 2026, 4:25 PM

IMF warns tokenized markets could amplify financial risks

IMF warns tokenized markets could amplify financial risks

Key Summary

The International Monetary Fund (IMF) warns that tokenized markets could amplify financial risks due to their lower liquidity and higher volatility compared to traditional markets. Despite growing demand for 24/7 trading, tokenization remains small and faces challenges such as poor interoperability and lack of widely accepted settlement assets.

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Market Overview

The global financial institution found tokenized equity markets less liquid and more volatile than traditional markets, despite growing demand for 24/7 trading.

Tokenization Challenges

Tokenization could reshape financial markets by making trading and settlement more efficient, but legal uncertainty and risks to financial stability could hinder wider adoption.

Trading Activity

Tokenized repurchase agreements, or repos, dominate tokenized trading activity, averaging $300 billion to $350 billion in daily transaction volume.

Regulatory Frameworks

The IMF called for clearer legal and regulatory frameworks, greater interoperability between tokenized and traditional financial systems, and safeguards to address emerging vulnerabilities as adoption expands.

Systemic Risks

The IMF warned that as tokenized markets grow, greater interconnectedness and leverage could amplify traditional financial risks, including fire sales, liquidity runs and contagion.
#IMF#TokenizedMarkets#Crypto#FinancialRisks#US#GlobalFinance

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