IMF Director Adrian: Tokenization Could Compress Settlement to Near-Instant, but Fragmented Regulation Poses Systemic Risks

According to Cointelegraph, on July 3, IMF monetary and capital markets director Tobias Adrian stated that tokenization could compress financial settlement from days to near-instantaneous execution by consolidating assets, settlement, and accounting on shared ledgers. Adrian cautioned that tokenization would shift risks from traditional financial intermediaries to underlying infrastructure, including smart contracts, distributed ledgers, and service providers. Without unified standards and coordinated regulation, fragmented tokenized financial markets could create new systemic risks due to platform incompatibility.
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