## Tokenized Finance

_IMF Notes, April 2, 2026_

## Source details

**Canonical URL:** [Tokenized Finance](https://www.imf.org/en/publications/imf-notes/issues/2026/04/01/tokenized-finance-574921)

## Other formats

- [Markdown version](/en/publications/imf-notes/issues/2026/04/01/tokenized-finance-574921/index.md)
- [Structured JSON version](/en/publications/imf-notes/issues/2026/04/01/tokenized-finance-574921/index.json)
- [Bundle manifest](/en/publications/imf-notes/issues/2026/04/01/tokenized-finance-574921/bundle-manifest.json)

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

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### 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.

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## Content in this bundle

- **Tokenized Finance — Introduction and Coordinated Public‑Anchored Scenario**
  - [Tokenized Finance — Introduction and Coordinated Public‑Anchored Scenario (Markdown version)](/-/media/files/publications/imf-notes/2026/english/insea2026001.pdf.md){rel="alternate" type="text/markdown"}
  - [Tokenized Finance — Introduction and Coordinated Public‑Anchored Scenario (PDF)](/-/media/files/publications/imf-notes/2026/english/insea2026001.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/imf-notes/issues/2026/04/01/tokenized-finance-574921_