Tokenization · Stability AI · Wall Street · Decrypt
Tokenized Stocks Show Real Demand But Remain Volatile and Illiquid, IMF Catches
Compiled by KHAO Editorial — aggregated from 2 sources. See llms.txt for citation guidance.
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Tokenized stocks may be a small market, but their traders aren’t keeping Wall Street hours.
Key facts
- The market is also tiny and concentrated: it’s worth about $2.3 billion, and Ondo Finance and Backed Finance’s xStocks account for more than 70% of it
- The NYSE plans to reach crypto investors through Blockchain.com, and NYSE owner ICE is working with OKX on 24/7 tokenized stock trading under the SEC’s new innovation exemption
- It urged regulators to consider circuit breakers for 24/7 trading and to monitor links to traditional markets more closely
- More than half of tokenized equity trading happens outside regular U.S. market hours, according to the International Monetary Fund’s latest Global Financial Stability Report
Summary
The IMF’s latest Global Financial Stability Report found that more than 50% of tokenized stock trading occurs outside regular U.S. market hours, and about 80% of trades are for less than one share. Traditional stocks absorbed 87% to 99% of overnight tokenized price moves at the open, but tokenized equities were about 1.5 times more volatile and less liquid. The IMF said systemic risks remain limited for now and urged regulators to consider circuit breakers for 24/7 trading. More than half of tokenized equity trading happens outside regular U.S. market hours, according to the International Monetary Fund’s latest Global Financial Stability Report.