Financial Stability Board: Tokenization poses low risk to global finance due to slow adoption

According to a report released by the Financial Stability Board (FSB) on Wednesday, the risks posed by institutional financial exploration of tokenization to the global financial system are small, mainly due to the limited adoption of this technology so far. The report notes that initiatives such as BlackRock's BUIDL Fund are still in the early stages, and are currently helping to mitigate potential threats to the financial system. Although the report points out that the current risks of this technology are low due to its inability to scale, several financial stability vulnerabilities related to tokenization based on DLT have been identified. The main issues include liquidity mismatches, leverage issues, asset quality, interoperability, and operational fragility. The report warns that if the scale of asset tokenization expands significantly, these risks may intensify, especially if the industry can solve interoperability issues and obtain clearer regulatory guidance.