Tokenized U.S. equities offer off-hours access but carry liquidity and stability risks, IMF says
An IMF study of five actively traded tokenized U.S. equities found that more than half of trading occurs outside regular market hours and about 80% of trades involve less than one share. Overnight price moves often carry information to conventional markets: over 85% were reflected in underlying shares within five minutes of opening. However, tokenized stocks were about 1.5 times as volatile and significantly less liquid than their traditional counterparts. The tokenized RWA market stood at about $65 billion in July, with equities accounting for roughly $2.3 billion. The IMF sees potential to automate reconciliation, dividends and collateral transfers, but warns that fragmented systems, round-the-clock trading and automated liquidations could amplify shocks. It calls for clearer ownership rules, liquidity safeguards, interoperability and settlement arrangements as the market expands.
