The International Monetary Fund’s (IMF) latest Global Financial Stability Report reveals that more than half of tokenized stock trading occurs outside regular U.S. market hours. About 80% of these trades involve less than one share, indicating strong demand for fractional ownership among retail investors.
The IMF studied the five most liquid tokenized U.S. equities, including tokens tracking Tesla, Nvidia, and the S&P 500, across 11 trading venues over a year. The report found that traditional stocks absorbed 87% to 99% of overnight price moves made by their tokenized counterparts, suggesting onchain prices carry real information.
However, tokenized equities were roughly 1.5 times more volatile and significantly less liquid than traditional stocks, particularly on decentralized exchanges. The market is also small and concentrated, valued at about $2.3 billion, with Ondo Finance and Backed Finance’s xStocks accounting for over 70% of it.
The IMF cautioned that systemic risks remain limited but urged regulators to consider circuit breakers for 24/7 trading and monitor links to traditional markets closely. The findings come as major U.S. players, including the NYSE, Securitize, and Coinbase, expand into the tokenization space.