Tokenized Finance

IMF Notes, April 2, 2026

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Tokenized Finance

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Bibliographic details

• Authors: Tobias Adrian
• Published: April 2, 2026
• Series: IMF Notes
• DOI: https://doi.org/10.5089/9798229042468.068

Key findings: nature and scope of tokenization

• Tokenization is defined as the representation of financial assets and liabilities on programmable digital ledgers.
• The most consequential transformation is occurring within the regulated financial system, including banks, asset managers, and financial market infrastructures.
• Tokenization can enable:
  • atomic settlement,
  • continuous liquidity management,
  • embedded compliance.
• The paper argues tokenization constitutes a structural shift in financial architecture rather than a marginal efficiency improvement.
• Core technology and design elements altering market functioning:
  • permissioned shared ledgers,
  • programmable financial assets,
  • smart contract-based risk management.

Systemic effects and risks

• Tokenization alters the nature of:
  • settlement,
  • liquidity,
  • systemic risk.
• Absent appropriate policy and institutional anchors, tokenization risks amplifying financial instability through:
  • speed,
  • concentration,
  • fragmentation,
  • changes in how contract-based risk management affects settlement and liquidity.

Policy prescriptions and prerequisites for successful adoption

• Long-term success depends on anchoring digital finance in public trust through:
  • clear policy frameworks,
  • safe settlement assets,
  • robust governance of code,
  • legal certainty,
  • international coordination.

Implications for financial market infrastructures and regulation

• Tokenization’s programmable features can embed compliance and reshape risk management practices within regulated entities and infrastructures.
• Regulatory focus areas implied by the analysis include settlement finality, interoperability, governance of smart contracts, and ensuring availability of safe settlement assets.

Content in this bundle

• Tokenized Finance — Introduction and Coordinated Public‑Anchored Scenario
  • Tokenized Finance — Introduction and Coordinated Public‑Anchored Scenario (Markdown version)
  • Tokenized Finance — Introduction and Coordinated Public‑Anchored Scenario (PDF)