IMF Says Tokenization Market Hits $65 Billion, Warns of Financial Risks

Highlights:

• IMF says the tokenization market has reached $65 billion but remains small compared with traditional financial markets.
• The IMF warns that tokenized assets could create financial risks without proper regulations and stronger safeguards.
• The IMF sees growth potential in tokenization but calls for clearer rules to support safe market expansion.

The International Monetary Fund (IMF) says tokenized assets have grown to around $65 billion. However, the market remains small compared with traditional capital markets, which hold approximately $300 trillion in assets. The IMF sees more room for tokenization to grow. However, it says governments need to address financial risks before the market expands further.

The IMF shared the figures on October 8, alongside a new blog discussing the conditions needed for tokenization to expand safely. The analysis is linked to its Global Financial Stability Report (GFSR), which examines risks and developments in global financial markets. “Tokenized assets have grown rapidly, reaching roughly $65b. Yet they remain tiny compared with traditional capital markets’ $300t in assets,” the IMF wrote.

Tokenized assets have grown rapidly, reaching roughly $65b. Yet they remain tiny compared with traditional capital markets’ $300t in assets. Our new GFSR explores the policy and market conditions needed for tokenization to scale safely: https://t.co/Xd1NOgqMla pic.twitter.com/F9tf7uhMsb

— IMF (@IMFNews) October 8, 2026

IMF Sees Growth Potential in the $65 Billion Tokenization Market

Tokenization turns assets like stocks, bonds, and real estate into digital tokens using blockchain technology. Each token represents an asset or a share of it. Investors can use these tokens to buy, sell, or transfer ownership. For instance, investors can buy government bonds in digital form through blockchain-based platforms. Blockchain technology can also support faster settlement, reducing the time needed to complete transactions.

Even so, tokenization makes up only a tiny fraction of global financial assets. The International Monetary Fund’s latest data highlights the vast difference that exists between emerging markets and conventional finance. The institution previously indicated that smart contracts would be instrumental in facilitating payments and other financial transactions.

IMF Calls for Clear Rules and Stronger Financial Safeguards

However, faster transactions also create new risks. In traditional finance, settlement delays give banks and other institutions time to manage payments and respond to unexpected problems. Tokenized systems can complete transactions almost instantly. As a result, financial problems may spread faster if automated systems fail or markets face sudden pressure.

The IMF has warned that poorly managed smart contracts, weak infrastructure, and uncertain ownership rights could create difficulties for financial institutions. In its earlier research, the organization called for clear legal frameworks, reliable settlement assets, and stronger oversight of blockchain-based financial systems.

Regulators must also determine how tokenized assets work across different countries. Without common standards, financial institutions could struggle to transfer assets between platforms. 

IMF Warns Tokenization Could Introduce New Financial Risks

The IMF has raised similar concerns about tokenization’s impact on financial stability. In a July 2 blog, IMF Financial Counsellor Tobias Adrian explained that tokenization could change how banks manage liquidity, payments, and financial risks. He also warned that emerging economies could face greater risks from rapid cross-border money transfers and increased reliance on foreign-currency stablecoins.

Meanwhile, the IMF continues to support financial innovation while encouraging governments to strengthen their regulatory frameworks. Its latest update places attention on the conditions needed for tokenization to expand without creating additional risks for global markets.