IMF says tokenised finance still small and fragmented
An IMF report says tokenised repo volumes average $300bn-$350bn a day against $13tn in the traditional US market, and warns that isolated networks and thin liquidity hold adoption back.
Key points
- Tokenised repo daily volume averages $300bn-$350bn, while the traditional US repo market handles about $13tn a day.
- Tokenised credit, money market funds and equities add roughly $65bn in volume, and over 50% of trading happens outside traditional hours.
- The IMF calls for technology-neutral rules and interoperability as tokenisation scales toward $300tn in global capital markets.
Tokenised finance remains small and fragmented, according to a new International Monetary Fund report, even as it promises round-the-clock trading and faster settlement. The report, published on 8 Oct 2026 alongside an analytical chapter of the October 2026 Global Financial Stability Report, says tokenised repo activity averages between $300bn and $350bn in daily volume. Tokenised credit, money market funds and equities add about $65bn. By comparison, the traditional US repo market alone processes roughly $13tn a day, while global capital markets hold more than $300tn in assets.
Activity is concentrated in the US and a few offshore hubs, and trading platforms sit on incompatible networks. The IMF says tokenised markets suffer thinner liquidity, higher volatility and price gaps caused by fragmented liquidity pools. More than 50% of tokenised trading volume occurs outside traditional market hours, and about 80% of analysed tokenised equity trades were smaller than one full share, which the report links to retail participation. Overnight returns in tokenised equities feed into traditional opening prices soon after markets open.
Liquidity and stability risks
The report argues that traditional settlement delays, though costly, gave firms time to manage liquidity and assess risk. Instant settlement on connected ledgers removes those buffers and opens new channels for risk transmission, which could speed contagion, leverage risks, fire sales and liquidity runs as the sector grows.
To allow safe growth, the IMF recommends a technology-neutral approach. It says countries should clarify the legal rights attached to tokenised assets, regulate similar activities consistently whatever the technology, and support interoperability between tokenised platforms and traditional finance.
What to watch: The report accompanies an analytical chapter of the IMF's October 2026 Global Financial Stability Report, which sets out the recommended technology-neutral rules.
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