- More than half of tokenized equity trading happens outside regular U.S. market hours, and about 80% of trades are for less than one full share.
- Traditional stocks absorbed 87% to 99% of overnight tokenized price moves at the open, while tokenized equities were roughly 1.5 times more volatile.
- The market is tiny and concentrated at ~$2.3 billion, with Ondo Finance and Backed Finance controlling over 70%.
- The IMF urged regulators to consider circuit breakers for 24/7 trading, noting systemic risks remain limited for now.
Tokenized stocks may be a small market, but their traders aren’t keeping Wall Street hours. More than half of tokenized equity trading occurs outside regular U.S. market hours, according to the International Monetary Fund’s latest Global Financial Stability Report.
The IMF studied the five most liquid tokenized U.S. equities across 11 venues over 365 days. Onchain prices carry real information: traditional shares absorbed 87% to 99% of overnight price moves made by their tokenized counterparts. However, tokenized equities were roughly 1.5 times more volatile and far less liquid, especially on decentralized exchanges.
The market is tiny and concentrated at about $2.3 billion, with Ondo Finance and Backed Finance accounting for over 70%. Both issue synthetic tokens offering price exposure without direct share ownership. The IMF said its findings “should be interpreted with caution” and that systemic risks remain limited for now.
Consequently, it urged regulators to consider circuit breakers for 24/7 trading and to monitor links to traditional markets more closely. Meanwhile, U.S. heavyweights are racing into tokenization: NYSE plans to reach crypto investors through Blockchain.com, and ICE is working with OKX on 24/7 tokenized stock trading. Securitize recently brought tokenized stocks including NVIDIA, Apple, and Amazon to Solana, while Coinbase launched tokenized stocks for non-U.S. users on Base in August.
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