The IMF tokenization report arrives in Chapter 3 of the October 2026 Global Financial Stability Report. The chapter carries the title “Scaling Tokenization: New Efficiencies, New Vulnerabilities.” Its headline number is blunt. Publicly reported tokenized assets reached roughly $65 billion, while global capital markets hold about $300 trillion. As a result, the Fund treats tokenization as a technology with large potential and a small footprint today.
Tokenized assets have grown rapidly, reaching roughly $65b. Yet they remain tiny compared with traditional capital markets’ $300t in assets. Our new GFSR explores the policy and market conditions needed for tokenization to scale safely: https://t.co/Xd1NOgqMla https://t.co/F9tf7uhMsb
— IMF (@IMFNews) October 8, 2026
What the $65 Billion Figure Actually Measures
The $65 billion figure covers publicly reported tokenized real-world assets as of July 2026. Fixed-income products make up most of it, including credit products and money-market funds. The count excludes private transactions, stablecoins and repurchase agreements. That distinction matters for readers who compare headline numbers.
Tokenized repo trades on a different scale. According to coverage of the report, daily volume in tokenized repurchase agreements averages $300 billion to $350 billion. However, that figure measures flow, not assets outstanding. Meanwhile, the traditional U.S. repo market moves about $13 trillion each day. Even the busiest corner of tokenized finance therefore handles a small share of what incumbent markets process.
The report also describes how investors use these markets. More than half of tokenized trading volume happens outside traditional market hours. Additionally, about 80% of the tokenized equity trades the IMF analyzed involve less than one full share. Investors clearly value round-the-clock access and fractional ownership. In contrast, institutional-size liquidity has not yet followed.
Thin Liquidity and Fragmented Platforms
The IMF explains the gap through market structure. Tokenized markets currently show thinner liquidity and higher volatility than conventional markets. Furthermore, separate platforms split liquidity into isolated pools. Price discrepancies appear when the same asset trades on different venues without a shared order flow.
This point challenges a common assumption in the industry. Many advocates argue that moving assets onchain automatically improves efficiency. The Fund argues the opposite when platforms stay disconnected. Network effects drive liquidity, and fragmentation weakens those effects. A tokenized bond on a closed platform may settle quickly, yet few buyers can reach it.
Four Constraints Hold Back Scale
The Fund identifies four linked constraints. Legal certainty comes first, because token holders need clear rights to the underlying asset. Regulatory clarity follows, since firms need to know which rules apply to tokenized products. Interoperability ranks third, because platforms must connect with each other and with traditional infrastructure. Finally, secure settlement assets complete the list.
The settlement point carries the most weight for financial stability. For systemically important securities settlement, the Fund favors central bank money. Privately issued stablecoins and deposit tokens can serve less systemic uses. However, they add issuer credit risk, liquidity risk and possible contagion. The IMF compares stablecoins to money-market funds, which stay stable in normal times but can face runs.
When Faster Settlement Becomes a Risk
The chapter’s second half explains the “new vulnerabilities” in its title. Today, settlement delays give regulators and central banks time to react during stress. Instant settlement removes that buffer. Margin calls, collateral transfers and asset sales could therefore move faster than authorities can respond.
Programmable markets can also automate the very behavior that fuels fire sales. Tight links between banks, funds, stablecoin issuers and platforms could spread losses more quickly. In addition, smart-contract errors, cyberattacks and concentration in a few infrastructure providers create operational weak points. Emergency lending facilities, notably, were not designed for markets that never close.
Three Paths and the Policy Response
Coverage of the report outlines three possible futures. In the first, a unified system forms around central bank money. In the second, incompatible national platforms emerge. In the third, private stablecoins dominate and public safeguards erode. The Fund wants policymakers to steer toward the first outcome.
Its recommendations stay practical. Countries should clarify the legal rights tied to tokenized assets. They should regulate similar activities consistently, regardless of technology. Authorities should also support interoperability between tokenized platforms and traditional systems. Finally, they should keep monitoring interconnectedness as the market grows.
For builders and institutions, the message is direct. Scale will depend less on faster ledgers and more on legal and settlement foundations. The IMF does not predict that tokenization will fail. Instead, it argues that the market must fix its plumbing before it can carry $300 trillion.
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