Tokenization is reshaping the global financial landscape, offering near-instant settlement, fractional ownership, and reduced costs. But as these digital assets transcend borders, global coordination is essential to prevent regulatory arbitrage and ensure financial stability.

A new publication from our Digital Finance Working Group, A Global Framework for Tokenized Assets, outlines a “dual-track” approach: robust national frameworks and regulatory sandboxes paired with international cooperation. This strategy focuses on interoperability rather than perfect harmonization, allowing nations to maintain sovereignty while participating in a connected financial ecosystem.

Established institutions like the BIS, IMF, and World Bank are uniquely positioned to lead the tokenized finance agenda, serving as convening forums and knowledge hubs to promote interoperability, data access, and financial stability. Ensuring an inclusive digital future is equally critical, and initiatives like the World Bank’s FundsChain and Bond-i show how blockchain can enhance transparency and accountability across all economies.