IMF finds demand for tokenized stocks, says the market is still volatile, illiquid
Investors are using blockchain-based shares for smaller and after-hours trades. The IMF says liquidity, legal rules and settlement systems have not caught up.
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Summary
- Tokenized U.S. stocks offer round-the-clock trading and fractional ownership, with more than half of trades occurring outside regular market hours and about 80% involving less than one share, the IMF found.
- Overnight price moves carried useful information, with more than 85% reflected in conventional shares within five minutes of markets opening.
- The IMF said tokenized equities remain a small, fragmented market that could improve settlement and automation, but require stronger legal, liquidity and interoperability safeguards.
