IMF warns tokenized markets could amplify financial risks
60-second summary
The IMF warns that tokenized equity markets, while attracting growing demand for 24/7 trading, are less liquid and more volatile than traditional exchanges, potentially amplifying systemic financial risks. It cites lower depth, fragmented order books and heightened price swings as key concerns, suggesting regulators must tighten oversight to prevent destabilizing impacts on broader markets.
The global financial institution found tokenized equity markets less liquid and more volatile than traditional markets, despite growing demand for 24/7 trading.