recently International Monetary Fund (IMF) The report warns that tokenization could increase market stress by removing the “buffer” created by payment delays, effectively arguing that faster markets could reduce the window for regulatory intervention. On the face of it, a very interesting narrative, but one that risks misdiagnosing where. risk in fact, it is in today’s market structure.
Richard BakerCEO and Founder tokenovateAny delay in settlement is not a hedge, he says, but an outdated constraint that can increase counterparty risk and lock up liquidity, especially in times of stress.
From now on perspectiveThe real problem is fragmentation, where disconnected systems, manual processes and delayed visibility allow risk to build unchecked.
As the implementation of tokenization accelerates 2026 In large market infrastructures, this actually raises a more fundamental question: Are we managing risk through better systems, or are we just relying on slower systems?
Richard BakerTokenovate CEO and Founder says:
“ The IMF’s concerns that tokenization could accelerate market stress place a significant emphasis on speed, but this risks overlooking where vulnerabilities actually arise in today’s market structure. “In practice, risk tends to accumulate across systems where fragmented data, manual processes, and delayed visibility limit the ability to act with precision.”
Any new innovation is welcomed by industry participants IMF We need to be patient and carefully understand how these breakthroughs will affect the ecosystem overall. Rather than jumping to hasty conclusions, we should be careful to fully understand the long-term consequences of any technological development.
Bekir added:
“Payment cycles are not designed as a mechanism for risk control. They are largely a result of operational complexity and in many cases expand rather than mitigate risk. When transactions remain unresolved for several days, counterparty risk increases and liquidity is unnecessarily constrained.
Bekir continued:
“Applying tokenization to the post-trade lifecycle begins to address these structural weaknesses. Automated workflows and synchronized data enable ongoing risk management supported by greater transparency and consistency across participants.”
While these updates may seem impressive, they do not automatically translate into tangible improvements on existing models. Continuous improvements are likely needed for tokenization to achieve its stated goals. DeFi and TradFi players.
Bekir concluded:
“The faster solution should not be seen as removing safeguards, but as embedding them more effectively within the market. The result is a system with less risk exposure, clearer visibility and greater resilience, especially in times of stress.”
While its full effect continues tokenization There is something unclear at this point; Since the industry is still in its infancy, one thing is clear: These digital innovations will fundamentally change the way existing systems work. Regulators and industry participants alike IMF They need to monitor these developments carefully so that they can respond more thoughtfully and meaningfully.
