IMF | TOKENIZATION UPDATE
Tokenized markets are expanding quickly but the IMF says they remain tiny and fragmented compared with traditional financial markets.
Tokenized repo activity now reaches roughly $300B–$350B per day while tokenized credit products, money-market funds and equities total around $65B.
The contrast is huge. U.S. repo markets handle roughly $13T daily while global capital-market assets are around $300T.
The IMF also highlights several challenges. Tokenized markets can have lower liquidity and higher volatility while activity spread across different platforms can weaken price discovery.
More than half of tokenized transactions happen outside traditional market hours, and around 80% of tokenized equity trades involve small single-stock transactions.
For tokenization to reach its potential, the IMF points to clearer legal rights, consistent regulation, interoperability and stronger monitoring of liquidity leverage and interconnectedness.
#imfsaystokenizedmarketssmall
Tokenized markets are expanding quickly but the IMF says they remain tiny and fragmented compared with traditional financial markets.
Tokenized repo activity now reaches roughly $300B–$350B per day while tokenized credit products, money-market funds and equities total around $65B.
The contrast is huge. U.S. repo markets handle roughly $13T daily while global capital-market assets are around $300T.
The IMF also highlights several challenges. Tokenized markets can have lower liquidity and higher volatility while activity spread across different platforms can weaken price discovery.
More than half of tokenized transactions happen outside traditional market hours, and around 80% of tokenized equity trades involve small single-stock transactions.
For tokenization to reach its potential, the IMF points to clearer legal rights, consistent regulation, interoperability and stronger monitoring of liquidity leverage and interconnectedness.
#imfsaystokenizedmarketssmall