IMF: Tokenization may reshape financial settlement and stability, but fragmented regulation could bring new risks

CoinFeed July 3 news, according to Cointelegraph, IMF financial advisor and director of the Monetary and Capital Markets Department Tobias Adrian said in a blog post that tokenization could fundamentally reshape how financial markets operate by integrating assets, settlement, and record-keeping into a shared ledger, compressing settlement processes that originally took days to near-instant completion. Adrian also warned that tokenization shifts risks from traditional financial intermediaries to the underlying infrastructure (including smart contracts, distributed ledgers, and service providers), and that without unified standards and coordinated regulation, tokenized financial markets could become fragmented due to platform incompatibility, creating new systemic risks.