Tokenized Stocks Show Real Demand But Remain Volatile and Illiquid, IMF Finds
Summary
An IMF report finds that more than half of trading in tokenized U.S. stocks takes place outside regular market hours, while about 80% of trades are for less than one share. Overnight token prices often anticipate traditional market moves, but tokenized equities are about 1.5 times more volatile and less liquid, especially on decentralized exchanges. The market is worth roughly $2.3 billion and is concentrated, with Ondo Finance and Backed Finance’s xStocks representing over 70%. The IMF cautions that its findings are preliminary, says systemic risks are limited for now, and urges regulators to consider circuit breakers and monitor links to traditional markets as major financial firms expand tokenization efforts.
