The International Monetary Fund (IMF) has stated that tokenized finance represents a fundamental restructuring of market architecture through smart contracts and shared ledgers, rather than a gradual improvement of existing financial infrastructure. This transformation enables near real-time settlement and 24/7 trading. However, the IMF warns that features such as automated margin mechanisms, real-time settlement, and programmable fund flows could exacerbate liquidity pressures during market volatility. The traditional financial system's time delays and intermediary buffering effects are diminished. Additionally, code vulnerabilities and design flaws in smart contracts or underlying infrastructure could rapidly propagate, affecting multiple participants.
IMF Highlights Risks and Opportunities of Tokenized Finance
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