Tokenization has the potential to reshape the architecture of the global financial system, but without common standards, it may exacerbate market fragmentation and systemic risks. This was stated by Tobias Adrian, financial advisor at the IMF and director of the Monetary and Capital Markets Department.

Tokenization could shift risk away from banks’ balance sheets towards platforms and code. That changes where vulnerabilities emerge, so policies must adapt. See what this means in our new blog: https://t.co/niSfVsSwgf pic.twitter.com/rH6ogTWl33

— IMF (@IMFNews) July 2, 2026

The material was published on July 2 and is based on an IMF report. It describes tokenization not as a mere technological improvement but as a structural shift in financial infrastructure.

How Tokenization Changes Things

Adrian noted that payments, securities, and derivatives have long existed in digital form but still rely on centralized databases and sequential processes. A transaction is executed, then cleared, settled, and reconciled.

Tokenization alters this sequence. If assets and liabilities move to shared digital ledgers, execution, clearing, and settlement can occur almost simultaneously and be managed by software. This reduces costs and speeds up operations but removes some familiar buffers. In traditional systems, delays between stages give participants and regulators time to intervene in case of errors or stress.

In a tokenized model, the need for liquidity arises in real-time, collateral requirements can be met automatically, and failures spread more quickly. According to the IMF, risk shifts from the balance sheets of banks, funds, and other institutions to platforms, smart contracts, infrastructure providers, and data quality.

What Will Be the Settlement Asset?

A key question is which asset will be used for final settlements. Historically, this role has been filled by central bank money, primarily the reserves that financial institutions hold in central bank accounts. Adrian mentioned that three models are emerging in a tokenized system:

  • Tokenized bank deposits — represent existing bank liabilities in digital form. They maintain the current banking and regulatory framework but require stricter 24/7 liquidity management;
  • Stablecoins — offer programmability and global reach but depend on the promise of convertibility at par into other forms of money. Their stability hinges on the quality of reserves, market liquidity, and issuer reliability;
  • Tokenized central bank reserves — eliminate credit risk associated with the settlement asset but require regulators to take a deeper role in the programmable infrastructure.

Where New Risks Arise

The IMF specifically warned about concentration and fragmentation. If platforms are incompatible, liquidity may become trapped within separate circles. In this case, tokenization will not eliminate fragmentation but create a new form of it — technical, legal, and regulatory.

Another risk relates to oversight of the code. When trading rules are encoded in smart contracts, oversight must extend not only to institutions but also to the software logic itself. Adrian pointed out that certain smart contracts could become "too important to fail." This necessitates an approach similar to the oversight of systemically important financial institutions, but applied to software and market infrastructure.

The legal framework remains a separate issue. Market participants must understand whether a ledger entry is recognized as proof of ownership, whether blockchain settlements have legal finality, and which jurisdiction's laws apply to disputes.

Risks for Emerging Economies

For emerging economies, the IMF identified specific macro-financial threats. Tokenized money and assets could accelerate cross-border capital flows, increase currency substitution, and undermine monetary sovereignty.

This risk becomes particularly acute if private global stablecoins emerge as the dominant means of payment. In such cases, a country's monetary infrastructure could partially shift to a framework that lies beyond its direct regulation.

Therefore, the IMF estimates that the future architecture of tokenized finance will depend not only on the speed of settlements and programmability. Key factors will include the choice of a safe settlement asset, platform compatibility, legal clarity, code oversight, and international coordination.

As a reminder, according to Aave founder Stani Kulechov, the RWA segment could expand to $50 trillion due to the digitization of so-called "abundant assets."

Previously, Ethereum co-founder and ConsenSys CEO Joseph Lubin suggested a gradual transition of the global economy to on-chain. He stated that tokenization has ceased to be an experiment — first solidifying in stablecoins, then spreading to treasury bonds and other real assets.