“…The IMF said traditional financial systems rely on settlement delays and batch processing to absorb shocks. These delays allow banks and institutions to net exposures, mobilize liquidity and respond before obligations are finalized.
Tokenized systems remove these safeguards. Transactions settle instantly and continuously, which means liquidity demands appear in real time.
The report warned that this could force institutions to meet obligations immediately, increasing the risk of sudden liquidity shortages during periods of volatility…”