Financial Market Infrastructures Evolution in a Tokenized Economy: Exploring blockchain implementation options for issuance, central clearing, settlement, and reporting

IMF Working Papers, July 2, 2026

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Financial Market Infrastructures Evolution in a Tokenized Economy: Exploring blockchain implementation options for issuance, central clearing, settlement, and reporting

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Bibliographic details

• Authors: Yaiza Cabedo, Tommaso Mancini-Griffoli, Fabian Schär, Nicolas Zhang
• Published: July 2, 2026
• Series: IMF Working Papers
• DOI: https://doi.org/10.5089/9798229051354.001

Core summary

• Examines how tokenization and distributed ledger technology (DLT) may transform Financial Market Infrastructures (FMIs) by enabling smart contracts to perform a growing share of functions traditionally undertaken by central securities depositories, central counterparties, and trade repositories.
• Argues that record-keeping, settlement, collateral management, and reporting can increasingly be executed on-chain, while key functions requiring legal certainty, governance, accountability, and discretion remain institutional in nature.
• Concludes that tokenization is more likely to reconfigure than eliminate FMIs, producing new efficiencies alongside novel operational and governance risks, with the most plausible outcome being a hybrid FMI model in which technology and institutions jointly provide trust, resilience, and oversight required for financial stability.

Key findings

• Activities amenable to migration to code:
  • Record-keeping
  • Settlement
  • Collateral management
  • Reporting
• Activities likely to remain institutional:
  • Functions requiring legal certainty
  • Governance
  • Accountability
  • Discretionary decision-making
• Net effect of tokenization:
  • Reconfiguration rather than elimination of FMIs
  • Creation of new efficiencies
  • Introduction of novel operational and governance risks

Risks and limitations identified

• Operational risks stemming from on-chain execution of FMI functions
• Governance risks as responsibilities shift between code and institutions
• Legal and accountability limitations that constrain full migration of FMI functions to smart contracts
• Evolution of risk profiles in tokenized environments that combine technological and institutional vulnerabilities

Policy implications and recommendations (as conveyed by the analysis)

• Anticipate a hybrid FMI model combining technological capabilities (smart contracts, on-chain processes) with institutional functions (legal frameworks, governance, oversight).
• Preserve institutional roles where legal certainty, governance, accountability, and discretion are required.
• Design oversight, resilience, and trust frameworks that integrate code-based automation with institutional governance to maintain financial stability.

Publication and metadata

• Authors: Yaiza Cabedo, Tommaso Mancini-Griffoli, Fabian Schär, Nicolas Zhang
• Date: July 2, 2026
• Series: Working Paper No. 2026/136
• Volume: 2026
• Issue: 136
• Pages: 52
• DOI: https://doi.org/10.5089/9798229051354.001
• Stock No: WPIEA2026136
• ISBN: 9798229051354
• ISSN: 1018-5941
• Subject tags: Blockchain and DLT, Central securities depositories, Collateral, Financial institutions, Financial markets, Securities, Smart contracts, Technology

IMF Working Paper: "Financial Market Infrastructures Evolution in a Tokenized Economy: Exploring blockchain implementation options for issuance, central clearing, settlement, and reporting" (Working Paper No. 2026/136), July 2, 2026.

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