IMF warns tokenized markets could amplify financial risks
Image: CointelegraphThe International Monetary Fund warned that tokenized markets could amplify traditional financial risks as they grow. It acknowledged faster settlement and lower transaction costs but said tokenized equities showed about 1.5 times the realized volatility of traditional counterparts and significantly lower liquidity. Tokenized real-world assets reached about $65 billion in outstanding value as of July. Tokenized equities totaled about $2.3 billion. Daily tokenized trading volumes averaged $300 billion to $350 billion, compared with roughly $13 trillion in the US repo market.
Key points
- The IMF warned tokenized markets could amplify traditional financial risks as they grow.
- Tokenized real-world assets reached about $65 billion in outstanding value as of July.
- Tokenized equities totaled about $2.3 billion, the IMF found.
- Daily tokenized trading volumes averaged $300 billion to $350 billion, against roughly $13 trillion in the US repo market.
- Tokenized equities showed about 1.5 times the realized volatility of traditional counterparts and lower liquidity.
Why it matters
The IMF's findings mean tokenized equity trading can involve wider price swings and harder exits than traditional equities. The fund also warned that closer links between tokenized and traditional finance could let problems in one market spill into the other.
Sources · 2 publishers
Crypto Briefing
Tier 2
IMF warns tokenized markets could amplify financial risks
Coverage timeline
- First reported by Cointelegraph
- Confirmed by Crypto Briefing
- CryptoVideos brief published
How this brief was made. Our system found this event in 2 independent publications, summarised two complete reports with AI and checked every number above against the source text. Sources are linked in full. Not financial advice. Report an error
