The International Monetary Fund said tokenized finance is expanding quickly but still represents a small share of broader capital markets. In its latest note, the IMF said tokenized repo transactions average about $300 billion to $350 billion a day, while other tokenized assets total roughly $65 billion. Those figures remain far below the roughly $13 trillion in average daily volume in the U.S. repo market and the estimated $300 trillion size of global capital market assets.
The IMF said the market is still highly fragmented despite its growth. For tokenization to expand safely, it said policymakers and market participants need legal certainty, a clearly defined regulatory framework, and interoperability across systems. The fund also warned that as the market grows, familiar financial stability risks could intensify, including fire sales, liquidity runs, and contagion. It urged policymakers to clarify the legal rights attached to tokenized assets, apply consistent regulation to similar activities, and keep monitoring interconnectedness, leverage, and liquidity risk.
Odaily reported that the International Monetary Fund put tokenized repo transactions at about $300 billion to $350 billion a day. Other tokenized assets, it said, come in at roughly $65 billion.
Set against that, the IMF said the U.S. repo market moves about $13 trillion in average daily volume. Global capital market assets, meanwhile, total about $300 trillion.
The fund said tokenized markets are expanding fast. But they are still small and badly fragmented. So, for growth that stays safe, it called for legal certainty, a clear regulatory framework, and interoperability.
The IMF also warned that if the market keeps expanding, old-school financial risks could get worse. Fire sales. Liquidity runs. Contagion. It said policymakers should spell out the legal rights attached to tokenized assets, make sure similar activities are regulated consistently, and keep watching interconnectedness, leverage, and liquidity risk.
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