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IMF Warns Tokenization Will Shift Financial Power From Banks to Code

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2026-07-05 15:58:52
The International Monetary Fund warned that tokenization could shift risk out of banks and into smart-contract code beyond regulators’ direct control. According to BeInCrypto, the IMF said instant settlement on shared ledgers removes traditional “safety brakes,” potentially letting glitches or runs spread faster than authorities can respond, and argued oversight should extend “to the code itself.”

The IMF also floated that some smart contracts could become “too important to fail,” while courts have yet to settle ownership of tokenized assets. BlackRock’s tokenized fund BUIDL holds about $2.4 billion and Ondo runs more than $1.4 billion; stablecoins exceed $300 billion, led by USDT near $186 billion and USDC around $73 billion.
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