Odaily Planet Daily reports that the IMF released a 23-page report on Thursday stating that tokenization has the potential to eliminate financial frictions and enhance transparency, but its net effect on financial stability remains uncertain. The report notes that atomic settlement and increased transparency reduce certain traditional risks, but speed and automation introduce new risks, and stress events in tokenized markets may unfold faster than in traditional systems, leaving less time for human intervention.
The IMF also noted that tokenization offers emerging markets opportunities to accelerate cross-border payments and financial inclusion, but it also brings risks of increased volatility in capital flows, rapid currency substitution, and weakened monetary sovereignty. Additionally, the report highlighted that without legal clarity on ownership records and settlement finality, tokenized markets may face fragmentation and marginalization.
The total value of tokenized real-world assets on-chain (excluding stablecoins) currently exceeds $27.6 billion. Boston Consulting Group estimated in 2022 that the tokenization market could reach $16 trillion by 2030, while McKinsey provided a more conservative estimate of $2 trillion in 2024.