The IMF said tokenization could improve cross-border payments and financial inclusion in emerging economies but cited concerns over volatility and the “erosion of monetary sovereignty.”
The International Monetary Fund said tokenization has the potential to remove friction and boost transparency in finance, but warned that the technology could also create challenges that affect financial stability.
“The net effect of tokenization on financial stability is uncertain,” the IMF said in a 23-page report on Thursday, stating that “atomic settlement and enhanced transparency reduce some traditional risks, but speed and automation introduce new ones.”
More than $27.6 billion worth of real-world assets, minus stablecoins, is currently tokenized onchain, data from RWA.xyz shows. Boston Consulting Group estimated in 2022 that the tokenization market could rise to $16 trillion by 2030, while McKinsey & Co in 2024 predicted a more conservative $2 trillion over the same time frame.
