The Fund acknowledged that tokenization expands the issuance, trading, settlement, and management of securities and other financial products. However, the technology shifts risks from the banking system to distributed ledgers and the code of smart contracts. The overall impact of tokenization on financial stability remains unclear. While it reduces traditional risks, the speed and automation introduce new ones. In tokenized markets, crises develop faster, leaving less time for decision-making. For developing countries, tokenization presents an opportunity to accelerate cross-border payments and expand access to financial services. However, it also raises the risk of capital instability, rapid currency substitution, and undermining monetary sovereignty.