IMF Warns Tokenization of Real-World Assets Could Transmit Crypto Risks to Traditional Finance

The International Monetary Fund (IMF) has raised concerns that the expanding real-world asset (RWA) tokenization market could introduce new systemic risks to the global financial system. According to the institution's specialists, tokenization is far more than a technological upgrade — it represents a fundamental transformation of the financial architecture.

Moving instruments such as equities, bonds, and money market products onto blockchain eliminates intermediaries, reduces settlement delays, and lowers costs. At the same time, however, it fundamentally alters the nature of financial risk.

Why This Matters

The tokenized RWA sector is experiencing explosive growth. According to DeFi Llama data, the market has already surpassed $23.4 billion(excluding stablecoins). Money market funds account for approximately 56% of the market, while tokenized precious metals make up around 33.5%. In March, analysts noted that the tokenized equities market grew 2,900% year-over-year, a trend supported by major stock exchanges NYSE and Nasdaq.

Given this pace of expansion, the IMF's warnings carry significant weight: without coordinated regulation, the integration of crypto infrastructure with traditional finance could become a conduit for systemic shocks.

Instant Settlement as a Crisis Accelerator

One of the primary threats identified by the fund is the speed of transactions. Instant settlement removes traditional time-based "buffers" that previously gave regulators and market participants room to respond to stress events. IMF experts believe this could lead to:

• Crises developing at a significantly faster pace;
• Automated processes amplifying negative effects;
• Substantially reduced opportunities for intervention and containment.

Additional Sources of Instability

The IMF also outlined several supplementary risks. These include liquidity fragmentation across different blockchain platforms and infrastructure concentration, where the failure of a single network could impact the entire market. Additionally, risks are being transferred from the banking system to smart contracts and digital ledgers, while global access to tokenized assets creates unpredictable capital flows.

Stablecoins received particular attention. They are widely used in RWA operations, serving as the bridge to the broader crypto market. Their stability depends directly on the quality of reserves and redemption mechanisms, making them vulnerable during mass withdrawals in stressful conditions.

Heightened Risks for Developing Economies

The fund's specialists specifically highlighted threats that the proliferation of tokenized assets and stablecoins poses to developing economies:

• Displacement of national currencies;
• Increased volatility in cross-border capital flows;
• Reduced effectiveness of central bank monetary policy.

The IMF concluded that while tokenization can genuinely improve market efficiency, without coordinated regulatory action and robust infrastructure, it risks becoming a source of systemic problems.

Aave founder Stani Kulechov has previously projected that the RWA segment could grow to $50 trillion through the digitization of so-called "abundance assets."