IMF: Tokenization Could Reshape Global Financial Architecture, Policy Choices Crucial

According to a post on the official blog of the International Monetary Fund (IMF), Tobias Adrian, Director of the IMF's Monetary and Capital Markets Department, wrote that asset tokenization is not merely a technical upgrade but will fundamentally alter the structure of the global financial system. When financial assets are transferred to shared digital ledgers, the three major processes of execution, clearing, and settlement can be completed simultaneously, and risks will shift centrally from the balance sheets of institutions such as banks to platforms and smart contracts. The article also warns that while tokenization eliminates friction, it also removes buffer mechanisms, leading to real-time liquidity demands and accelerated risk transmission. For emerging market countries, the risks of rapid cross-border capital flows and erosion of monetary sovereignty are particularly prominent. The IMF emphasized that current policy choices will determine whether tokenized finance strengthens or fragments the global financial system, and countries need to establish coordination mechanisms as soon as possible on core issues such as the roles of public and private money, interoperability, legal frameworks, and liquidity support.