## 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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## 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

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### 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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_Source: https://www.imf.org/en/publications/wp/issues/2026/07/01/financial-market-infrastructures-evolution-in-a-tokenized-economy-577325_