<\/p>\n
But a recent <\/span>report<\/span><\/a> by the <\/span>International Monetary Fund<\/span><\/a> (IMF) warns that tokenization might make it too difficult for regulators to deal with a financial crisis.<\/span><\/p>\n \u201cFrom the financial stability perspective, tokenization presents a familiar trade-off in a new form. Atomic settlement and enhanced transparency reduce some traditional risks, but speed and automation introduce new vulnerabilities,\u201d wrote <\/span>Tobias Adrian<\/span><\/a>, the IMF economist who authored the report.<\/span><\/p>\n \u201cStress events are likely to unfold faster, leaving less time for discretionary intervention.<\/span><\/p>\n \u201cTherefore, ensuring stability requires that tokenized asset management remains anchored in safe settlement assets, legally recognized finality, and robust governance arrangements.\u201d<\/span><\/p>\n The report noted some of the advantages of tokenization, such as reducing settlement risk and collateral requirements. And by integrating compliance rules into the infrastructure, it can reduce operational costs and lead to greater transparency.\u00a0<\/span><\/p>\n Advertisement: Scroll to Continue<\/p>\n We\u2019d love to be your preferred source for news<\/a>.<\/p>\n Please add us to your preferred sources list so our news, data and interviews show up in your feed. Thanks!<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/div>\n<\/div>\n \u201cHowever, these benefits come at the cost of increased concentration,\u201d Adrian added. \u201cA single shared ledger can not only replace dozens of bilateral links, but it also becomes a critical node whose failure could disrupt the entire market.\u201d<\/span><\/p>\n The report comes as two pillars of Wall Street, the New York Stock Exchange (NYSE) and <\/span>Nasdaq<\/span><\/a>,\u00a0are both embarking on tokenization projects.<\/span><\/p>\n Nasdaq has been granted permission from U.S. regulators to allow some securities to trade in tokenized form, and recently teamed up with digital assets trading platform Talos to develop a solution for managing tokenized collateral.<\/span><\/p>\n \u201cThe partnership addresses structural barriers that have prevented widespread adoption of tokenized collateral in institutional markets, including the challenge of integrating digital assets into existing risk management and collateral workflows,\u201d the companies said in a news release.<\/span><\/p>\n And in January, the NYSE announced that it was creating a venue for <\/span>round-the-clock tokenized stock trading<\/span><\/a>.<\/span><\/p>\n \u201cThis reflects an evolution of NYSE\u2019s trading capabilities which went from trading floor, to electronic order-book, to blockchain,\u201d <\/span>Michael Blaugrund<\/span><\/a>, vice president of strategic initiatives at NYSE parent <\/span>Intercontinental Exchange<\/span><\/a>, said in an interview with Bloomberg News.<\/span><\/p>\n \u201cIt allows for new types of investor accessibility, and will create new opportunities for retail to participate in the stablecoin-funded markets that have attracted their attention.\u201d<\/span><\/p>\n The NYSE in March announced it was working with <\/span>Securitize<\/span><\/a> to build its <\/span>tokenized securities<\/span><\/a> trading platform. The exchange named Securitize the first digital transfer agent eligible to mint blockchain-native securities for corporate or exchange-traded fund issuers on the platform<\/span><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":" But a recent report by the International Monetary Fund (IMF) warns that tokenization might make it too difficult for regulators to deal with a financial crisis. \u201cFrom the financial stability perspective, tokenization presents a familiar trade-off in a new form. Atomic settlement and enhanced transparency reduce some traditional risks, but speed and automation introduce new […]<\/p>\n","protected":false},"author":2,"featured_media":423640,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[235,203,210,234,231,232,237,238,236,233],"class_list":["post-423638","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain","tag-bitcoin","tag-crypto-currency","tag-elon-musk","tag-ethereum","tag-hyperledger","tag-ibm","tag-mining","tag-nodes","tag-spacex","tag-tesla"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/423638","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=423638"}],"version-history":[{"count":1,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/423638\/revisions"}],"predecessor-version":[{"id":423641,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/423638\/revisions\/423641"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/423640"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=423638"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=423638"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=423638"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}