The International Monetary Fund (IMF) has issued a warning regarding the risks associated with asset tokenization, despite its potential to transform the financial system through instant settlement and reduced intermediaries. The IMF cautions that automated markets and smart contracts could amplify volatility and transmit crypto-related risks to the global financial system. Additionally, the rapid cross-border movement of tokenized assets may exacerbate regulatory challenges and financial fragmentation. The IMF calls for clearer legal frameworks and enhanced global coordination to address these issues.