The International Monetary Fund (IMF) has warned that the growth of tokenized markets could amplify traditional financial risks, including fire sales, liquidity runs and contagion effects. Tokenized equities exhibit significantly lower liquidity and roughly 1.5 times the realized volatility of their traditional counterparts. The institution is calling for clearer legal and regulatory frameworks, greater interoperability between tokenized and traditional financial systems, and safeguards to address emerging vulnerabilities. The IMF notes, however, that systemic risks remain limited for now due to the current low level of adoption.
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