WASHINGTON, D.C. / CryptoWire / – The International Monetary Fund has found clear demand for tokenized U.S. stocks despite thin liquidity and higher volatility. Its latest financial stability analysis examined trading in some of the most active blockchain-based equity products. More than half of trading occurred outside regular U.S. market hours. About 80% of transactions involved less than one full share. The IMF said these figures show investors are using round-the-clock access and lower entry points offered by tokenized stocks.
The IMF reviewed tokenized products linked to major U.S. equities and indexes, including Tesla, Nvidia, Alphabet and the Nasdaq 100. It compared activity across centralized and decentralized venues. Overnight trading also carried price information into conventional markets. More than 85% of overnight moves in tokenized shares appeared in traditional counterparts within five minutes of the U.S. market opening. The IMF cited the result as evidence that overnight tokenized trading contains information relevant to conventional share prices.
The broader market remains small next to established securities markets. Tokenized real-world assets totaled about $65 billion as of July 31, according to the IMF analysis. Tokenized equities represented roughly $2.3 billion of that amount. The fund found these equity products were about 1.5 times as volatile as the conventional shares they tracked. They were also significantly less liquid. Market activity remains spread across platforms, blockchains, custodians and settlement systems that do not always operate together.
Round-the-clock access drives tokenized stock trading
Tokenized stocks use blockchain infrastructure to represent exposure to shares and other financial assets. The model can support continuous trading and smaller investment amounts through fractional ownership. It can also automate processes that traditional markets handle through separate systems. The IMF said tokenization can reduce reconciliation work, automate dividend-related tasks and speed collateral transfers. Shared ledgers can also bring trading, ownership records and settlement closer together. However, the legal structure and investor rights attached to tokenized products can vary.
The IMF said the market still faces gaps in legal clarity, settlement design and interoperability. Different platforms may use separate blockchain networks, custodians and forms of settlement assets. Fragmentation can limit liquidity and reduce efficiency across tokenized markets. The fund also identified operational and financial stability risks involving automated margin calls, liquidations and rapid collateral transfers. Current systemic risks remain limited because tokenized markets still represent a small part of the financial system.
Liquidity and legal safeguards remain central concerns
The report called for clearer rules around ownership, settlement finality and investor protections as tokenized markets develop. It also highlighted the need for compatible systems and reliable settlement assets. Liquidity safeguards remain important because thinner markets can experience sharper price movements during heavy trading. The IMF supports a technology-neutral regulatory approach that applies comparable rules to activities carrying comparable risks. Its analysis also emphasizes closer monitoring of links between tokenized markets and traditional financial institutions.
Tokenized equities remain a small segment of global markets, but trading data confirms demand for features unavailable on conventional exchanges. Investors are using the products outside standard market hours and frequently buying fractional positions. At the same time, IMF data shows higher volatility, weaker liquidity and fragmented market infrastructure. Tokenized stocks are also becoming more closely connected with conventional securities through pricing and settlement activity. The IMF said stronger legal, liquidity and interoperability safeguards remain necessary as financial asset tokenization develops.