The International Monetary Fund says tokenization could reshape finance by making transactions faster, cheaper, and more transparent. By moving assets like stocks, bonds, and real estate onto blockchain networks, processes like settlement and trading could become almost instant — removing many traditional inefficiencies.

But there’s a catch. While tokenization reduces some risks, it introduces new ones. Faster systems mean faster failures, and automated smart contracts leave little room for human intervention during crises. In other words, finance could become more efficient — but also more fragile if not managed carefully.