IMF Flags Liquidity and Volatility Risks in Tokenized Markets
The IMF found tokenized equity markets less liquid and more volatile than conventional markets, warning that tokenization could magnify financial risks.
The International Monetary Fund has cautioned that tokenized markets could intensify financial risks, according to a report by Cointelegraph.
The institution’s findings showed that tokenized equity markets had lower liquidity and greater volatility than their traditional counterparts.
The warning comes amid rising demand for round-the-clock trading, highlighting a contrast between interest in continuous market access and the risks identified by the IMF.
Source: Cointelegraph
