#IMFSaysTokenizedMarketsSmall $
In Chapter 3 of the *October 2026 Global Financial Stability Report* - "Scaling Tokenization: New Efficiencies, New Vulnerabilities" - the IMF says tokenized markets are growing fast but remain *very small and fragmented*. 0b07
*How small:*
- *Tokenized RWAs:* ∼$65B outstanding as of July, vs ∼$300T in global capital-market assets
- Tokenized credit: $30.4B
- Money market funds: $17.5B
- Tokenized equities: only ∼$2.3B
- *Tokenized repos* dominate activity: $300-350B daily volume vs ∼$13T daily in the broader US repo market 0b07
*Why it hasn't scaled - 4 interlinked constraints:*
1. Legal certainty
2. Regulatory clarity
3. Interoperability
4. Availability of widely accepted settlement assets e23a
Trading is split across platforms/networks, which weakens liquidity and price formation. e6ab
*What investors do like even at small scale:*
- >50% of tokenized equity trading happens outside regular US market hours
- ∼80% of trades are <1 share = fractional ownership demand 0b07
IMF's warning: systemic risk is limited today _because_ it's small, but if it scales, it could amplify traditional risks like fire sales, liquidity runs, and contagion - and unfold faster than traditional markets. e6ab