IMF Highlights Tokenization’s Promise — and Its Perils

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The IMF released a new explainer video on X outlining the rapid rise of tokenized markets. The fund says tokenization can make buying, owning and transferring assets “faster and cheaper” by removing layers of intermediaries. But it warns that efficiencies come with risks — including flash-crash-style volatility and smart-contract chain reactions that could trigger systemic shocks.

[Nahid Hossen]

Tokenization has massive upside, but the risks are just as real.