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IMF finds demand for tokenized stocks but warns of high volatility and low liquidity

An International Monetary Fund analysis revealed that tokenized stocks are seeing genuine demand for fractional and after-hours trading, but the $2.3 billion market remains significantly more volatile and less liquid than traditional equities.

Conceptual 3D illustration of transparent tokens bearing corporate logos including Tesla and Meta on a dark background.
Image: @coinbureau

In its Global Financial Stability Report, the International Monetary Fund reported real demand for blockchain-based equities, driven by investors seeking fractional shares and trading flexibility. Looking at the five most liquid tokenized U.S. equities, including Tesla, Nvidia, and Google, the analysis discovered that more than half of all trading volume occurs outside regular U.S. market hours.[1][2][3]

Trading data highlighted substantial use for micro-investing, with roughly 80% of trades executed for less than a single share. The sector remains relatively small at about $2.3 billion, even as the broader market for tokenized real-world assets has reached an estimated $65 billion.[1][2]

The IMF warned that the market faces structural hurdles, noting that tokenized stocks show about 1.5 times the volatility of traditional shares while remaining considerably less liquid. The organization added that market liquidity, legal frameworks, and settlement systems have yet to catch up with tokenized stock trading.[1][2][3][4]

Key facts

  • The IMF analyzed tokenized equities as part of its Global Financial Stability Report, examining the five most liquid U.S. stocks, including Tesla, Nvidia, and Google.
  • More than half of tokenized stock trading occurs outside traditional U.S. market hours.
  • Approximately 80% of tokenized stock trades are for less than one share.
  • Tokenized stocks demonstrate roughly 1.5 times the volatility of their traditional versions and are considerably less liquid.
  • The tokenized stock market is valued at approximately $2.3 billion, compared to the broader $65 billion tokenized real-world asset market.
  • The IMF stated that settlement systems, legal rules, and liquidity have not caught up with tokenized stock activity.

Sources 路 4 sources

  1. DE

    DecryptArticle 路

    Tokenized Stocks Show Real Demand But Remain Volatile and Illiquid, IMF Finds An IMF analysis found that more than half of tokenized stock trading happens outside U.S. market hours, though the roughly $2.3 billion market remains more volatile and less liquid than traditional equities.

    Open source
  2. CB

    Coin Bureau@coinbureauPost on X 路

    馃毃HUGE: The IMF says more than HALF of tokenized stock trading happens outside US market hours. The IMF鈥檚 latest Global Financial Stability Report studied the five most liquid tokenized US equities, including Tesla, Nvidia and Google. About 80% of trades were for less than one share. But tokenized stocks showed about 1.5 times the volatility of their traditional versions, and were considerably less liquid. Tokenized stocks remain small at about $2.3 BILLION, while the wider tokenized real-world asset market is about $65 BILLION.

    Open source
  3. CO

    CoindeskArticle 路

    IMF finds demand for tokenized stocks, says the market is still volatile, illiquid Investors are using blockchain-based shares for smaller and after-hours trades. The IMF says liquidity, legal rules and settlement systems have not caught up.

    Open source
  4. WG

    Watcher.Guru@WatcherGuruPost on X 路

    JUST IN: IMF says tokenized stocks are "less liquid and more volatile" than the traditional stocks.

    Open source