IMF flags four systemic risks as tokenization moves market plumbing on-chain

The IMF says crypto tokenization represents a structural change to financial market "plumbing", warning it could amplify liquidity stress as settlement, margining, and compliance are embedded in code. The report argues that atomic settlement, 24/7 trading, and automated margin calls may accelerate shocks beyond regulators' response speed, while fragmented liquidity across chains can worsen slippage and risk management. It also notes emerging-markets exposure, where large flows of crypto tokens and dollar-pegged stablecoins could undermine local monetary policy tools.