IMF Warns Tokenization Could Risk $2.4B in Assets

The International Monetary Fund (IMF) warned that tokenization may transfer risk from banks to code, potentially impacting the management of trillions in assets. Wall Street firms like BlackRock are moving towards this technology, with BlackRock's tokenized fund BUIDL holding approximately $2.4 billion. Additionally, over $300 billion has been invested in stablecoins, highlighting the significant financial shift. The IMF emphasized the critical need for oversight extending beyond institutions to the underlying code managing these assets.