IMF finds over half of tokenized US stock trading happens after Wall Street closes
An IMF study of five tokenized US equity products across 11 venues found that more than half of sampled trading occurred outside regular US market hours, and about 80% of transactions involved less than one share. Overnight price movements showed an estimated 87%–99% pass-through to underlying stocks at the next session’s open, though the study did not establish causation. Tokenized equities had roughly 50% higher realized volatility than traditional shares, while liquidity was weaker—especially on decentralized exchanges. The IMF said systemic risks remain limited at current scale but could grow as continuous trading and automated settlement expand. It called for safeguards suited to overnight and weekend markets, including circuit breakers, liquidity protections, and better monitoring of links with traditional finance.
