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The International Monetary Fund has found rising demand for tokenized U.S. stocks. But the market remains volatile and illiquid.
Key Findings from the IMF Report
More than half of trades happen outside regular U.S. market hours.
About 80% of trades are for less than one share.
Overnight price moves in tokenized stocks are mostly reflected in traditional shares within five minutes of market open.
What Tokenized Stocks Offer
They enable 24/7 trading, giving access beyond regular hours.
They allow investors to buy fractions of a share, lowering entry barriers.
Market Size and Context
The global tokenized real-world asset market is about $65 billion as of July 31.
Tokenized equities make up $2.3 billion of that total.
This compares to a 2025 global equity market capitalization of just under $160 trillion.
Why the Market Is Still Risky
Tokenized stocks are about 1.5 times more volatile than traditional shares.
They are also significantly less liquid.
Trading happens across disconnected platforms: private exchanges, public blockchains, custodians, and settlement tools.
Challenges to Wider Adoption
Legal rules on ownership are weak.
Liquidity safeguards are lacking.
Systems don’t connect well, limiting interoperability.
Automated margin calls and 24-hour trading could worsen market shocks.
Industry Developments
Several exchanges now offer tokenized stock trading.
- Coinbase Global (COIN)
- Kraken
- Binance
- Robinhood Markets (HOOD)
- OKX and Intercontinental Exchange (ICE), which owns the New York Stock Exchange
Bullish (BLSH), a Gibraltar-based crypto company, launched tokenized equity trading in August.
What to Watch Next
The market is still small and nascent.
Stronger legal rules, better liquidity standards, and connected systems are needed for growth.
Source: IMF Global Financial Stability Report
For deeper analysis on the risks of tokenized assets, see our article on synthetic tokenized stocks and investor protection.
