IMF Warns: Tokenized Finance Is Reshaping Global Markets, but a $27.5B RWA Footprint Hides “Systemic Risk”

The International Monetary Fund (IMF) has released its latest report warning that tokenized finance is fundamentally reshaping the structure of global markets. Despite the fact that the size of tokenized real-world assets (RWA) has surpassed $27.5 billion, its real-time settlement and automated features could trigger a new kind of systemic risk.
（Backgrounder: Franklin Templeton teamed up with Ondo Finance to launch a “tokenized ETF,” enabling 24/7 trading inside crypto wallets）
（Additional context: BlackRock CEO letter to shareholders: Tokenization is like the internet of 1996, and will fundamentally change the financial industry）

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• RWA size surpasses $27.5 billion, U.S. Treasuries become the main driver
• Automation and real-time settlement may amplify market turbulence
• Competitive pressure between stablecoins and CBDC raises concerns about fragmentation

On April 2, the International Monetary Fund (IMF) released its latest report, issuing a strong warning about the recently hot “tokenized finance.” The IMF said that tokenization technology is not just a gradual improvement to existing financial infrastructure, but a revolution that is actively “restructuring market operating frameworks.” As the adoption rate of tokenized real-world assets (RWA) continues to rise, the IMF is concerned that the pursuit of speed and an automated operating model may introduce entirely new systemic risks into the global financial system.

RWA size surpasses $27.5 billion, U.S. Treasuries become the main driver

Latest data shows that tokenization is no longer a theoretical concept—it is a market reality already unfolding. As of early April, the total market value of tokenized real-world assets reached about $27.5 billion, highlighting that a large amount of capital is flowing into the on-chain world. Among them, products tied to U.S. government debt (U.S. Treasury) account for the vast majority, contributing a market value of more than $12 billion; next are commodities and credit instruments. By comparison, the scale of tokenized stocks and venture capital—retail-oriented assets—remains relatively small.

This distribution suggests that the current tokenization boom is being driven mainly by institutional investors’ demand for yield-bearing and fixed-income products, rather than retail investors’ preferred stock assets. Traditional financial instruments are accelerating their adaptation to blockchain settlement systems, which aligns closely with the broader trend in the development of financial markets.

Automation and real-time settlement may amplify market shocks

In its report, the IMF emphasized that tokenized finance is fundamentally changing the foundation on which trust is built in the financial system. In the past, transaction models that relied heavily on intermediaries such as banks and settlement institutions are gradually being replaced by smart contracts and shared ledgers. While this delivers near real-time settlement and 24/7 uninterrupted market activity—greatly reducing friction and counterparty risk—it also removes the “buffer mechanisms” that existed in the traditional financial system.

The report warns that the high-efficiency characteristics of tokenized markets could also become a catalyst for amplifying instability. During periods of extreme market volatility, automated margin calls, real-time settlement, and programmable capital flows could all create risks. Unlike traditional systems where time delays provide a shock-absorbing effect, tokenized systems may transmit market stress to all participants instantly. In addition, the IMF also pointed out that if there are code vulnerabilities in smart contracts or the underlying infrastructure, errors could spread quickly and deliver a major blow to the market.

Competitive pressure between stablecoins and CBDC raises concerns about fragmentation

In addition to technical risks, the IMF also highlighted concerns about system fragmentation and regulatory challenges. As different tokenized platforms operate independently with their own rules and standards, the global financial system faces an increased risk of further division. Particularly when stablecoins, tokenized deposits, and central bank digital currencies (CBDC) are all competing to become the dominant “primary settlement layer,” cross-border coordination will become exceptionally complex.

The IMF concluded that although tokenization brings clear efficiency gains, its long-term impact will depend on how effectively risks can be controlled on both the technical and regulatory fronts. As adoption continues to rise, global policymakers must reexamine and adjust existing regulatory frameworks to strike a balance between innovation and financial stability.