IMF finds demand for tokenized stocks, says the market is still volatile, illiquid
Reported by CoinDesk · AI-assisted summary by ChikoCorp AI News Desk
AI-generated summary based on the linked source; not independently verified. This is not investment advice. Verify market-moving details at the original publisher before acting. See our editorial policy, AI content policy, and financial disclaimer.
Summary
The IMF found that tokenized U.S. stocks offer benefits such as round-the-clock trading and fractional ownership, with over half of trades occurring outside regular market hours and around 80% involving less than one share. However, these tokenized equities are more volatile and less liquid than their traditional counterparts. The IMF's report highlights the market’s small and fragmented nature, emphasizing the need for stronger legal frameworks and interoperability safeguards.
Why it matters
The IMF suggests tokenized stocks demonstrate crypto's potential to enable continuous trading and fractional investment, appealing to investors seeking 24/7 market access and lower entry points. Despite these advances, the sector's volatility, limited liquidity, and fragmented infrastructure present challenges that could impact market stability and efficiency if the market expands significantly without appropriate regulation and infrastructure improvements.
Key context
The report analyzed the five most actively traded tokenized U.S. equities, including Tesla, Nvidia, and Alphabet, across centralized and decentralized venues. Overnight price moves in tokenized stocks reflected valuable information for the traditional market shortly after U.S. markets opened. The global tokenized real-world asset market was estimated at roughly $65 billion as of July 31, with tokenized equities accounting for about $2.3 billion, a small fraction compared to the $160 trillion global equity market.
Key numbers and entities
Notable equities studied include Tesla (TSLA), Nvidia (NVDA), and Alphabet (GOOG). The tokenized real-world asset market is estimated at $65 billion as of July 31, 2026, with tokenized equities at $2.3 billion. Exchanges and companies involved include Bullish (BLSH), OKX, Intercontinental Exchange (ICE), Coinbase Global (COIN), Kraken, Binance, and Robinhood Markets (HOOD).
What remains unclear
The report does not specify detailed timelines or concrete regulatory steps for enhancing legal rules, liquidity safeguards, or interoperability. It also does not provide detailed data on user demographics or the specific mechanisms by which tokenized stock volatility and liquidity differ from traditional markets.