The International Monetary Fund warns that the market for tokens could pose financial risks.

The International Monetary Fund points out that tokenization can change financial markets, but legal uncertainty and stability risks also hinder acceptance.

The International Monetary Fund noted in an analysis on Thursday that tokenization could transform financial markets by making transactions and payments more efficient, but legal uncertainty and risks to financial stability may impede widespread adoption.

The International Monetary Fund's analysis notes that the tokenized financial market is growing rapidly but remains small compared to traditional markets, with key barriers being weak interconnections and a lack of widely accepted pricing assets.

The token market is still small compared to the traditional one.

The primary activity of the token-converted market is also vibrant in buyback deals. The International Monetary Fund notes that tokenized reverse transactions dominate most buying and selling activities, with an average transaction value300,000 of US$1 million to US$2 million per day, compared to the U.S. reverse deal market which trades approximately $13 trillion per day.350,000

In addition to repurchase agreements and stablecoins, the fixed value of tokenized assets has exploded in credit products and money market funds. As of July 2017, real assets converted into tokens had an estimated net worth of US$3 trillion, which is a small proportion of global capital markets' roughly $300 trillion in assets.65,000

Of this number, tokenized credits are valued at US$4 million; money market funds are worth US$5 million and tokenised stocks have an estimated value of US$6 million.

The Token stock attracts investors by trading 24 hours a day.

Despite its small size, token-converted stocks attract investors who want to trade around the clock and hold a subset. The International Monetary Fund found that more than half of all tokenized stock trades occur outside normal U.S. market trading hours, while an estimated 80% of listings have fewer than 1 share.

The International Monetary Fund data also shows the volume of trading in tokens broken down by time period and market type.

Overnight rates may be a sign, but the quality is still low.

The International Monetary Fund also found that overnight price movements in tokens appear in traditional stock prices shortly after the market opens, indicating that token markets may provide useful price signals outside of normal trading hours.

However, the International Monetary Fund notes that tokens are significantly less volatile and have a real impact of approximately 1.5 times that of traditional securities. The IMF warns that as token markets grow, increased interconnectedness and borrowing to extend status may increase traditional financial risks including fraud, identity theft, and spread risk.

Regulatory and protective measures are still needed.

The International Monetary Fund calls for a clearer legal and regulatory framework, more interconnectedness between token-based and traditional financial systems, and safeguards to address vulnerabilities that may arise as adoption expands.

The report notes that the current systemic risk is limited due to relatively low adoption.

Earlier warnings and perspectives from Europe

The International Monetary Fund had already expressed concerns about the conversion to tokens in November.2025 The IMF warned that automated trading and interconnected virtual contracts could exacerbate market volatility and sudden price falls.

In April, the International Monetary Fund warned that faster payments could accelerate financial stresses, while an analysis in July highlighted systemic risks from fragmented platforms and insufficient regulatory coordination.

European regulators have similar concerns. Last month, the European Securities and Markets Authority warned that increased connectivity between cryptocurrencies and traditional finance, including through tokenized stocks, could increase the risk of financial shocks spreading across markets.

The future depends more on policy than technology.

The IMF's authors concluded in a blog post on Thursday that tokenization may still change the financial sector, but its future will be determined by policies guaranteeing market depth, trust and strong safeguards rather than technological feasibility.

Additional chapters from financial institutions and magazines

In a related context, Fidelity states that future-oriented financial institutions like token exchange are irreversible.

A related article in the magazine questions whether a resurgence of crypto lending has solved the risk problem.