WASHINGTON, D.C. / CryptoWire / – Tokenized stocks are attracting investors who want round-the-clock access and fractional trading, according to new International Monetary Fund analysis. The market remains small, thinly traded and more volatile than conventional equities. IMF researchers examined some of the most liquid tokenized U.S. stock products across centralized and decentralized platforms. Their findings show clear demand for trading outside normal exchange hours. They also point to limits in liquidity, market depth and the infrastructure that connects tokenized assets.
More than half of trading in the IMF sample took place outside regular U.S. market hours. About 80% of transactions involved less than one full share. Those figures indicate that investors are using tokenized products for access that conventional exchanges do not provide. The products can trade around the clock and can be divided into very small positions. The IMF said the pattern offers early evidence that these features matter to users, especially across different time zones.
The study covered products linked to the S&P 500, Nasdaq, Tesla, Alphabet and Nvidia. Researchers reviewed activity across 11 centralized and decentralized trading venues. The sampled products represented about $345 million, equal to roughly 15% of the tokenized equity market. The IMF also found that overnight trading carried useful price information. Between 87% and 99% of overnight moves appeared in conventional counterparts within five minutes after U.S. markets opened.
Tokenized equity demand centers on access and fractions
Tokenized real-world assets totaled about $65.1 billion as of July 31, based on the IMF analysis. Tokenized equities accounted for about $2.3 billion of that amount. Fixed-income products made up a much larger share of the broader tokenized asset market. Even so, equities offer a direct test of how blockchain-based trading can interact with listed securities. Current activity remains concentrated, with Ondo Finance and Backed Finance together controlling more than 70% of tokenized equity value.
The IMF said tokenization can streamline parts of financial-market infrastructure. Shared programmable ledgers can reduce reconciliation and automate some settlement-related processes. They can also support faster collateral movement and simpler recordkeeping across connected systems. However, tokenized products can carry different legal structures and investor rights. Market participants may also rely on separate blockchains, custodians and settlement assets. These differences can fragment liquidity and make it harder for platforms to work together.
Liquidity, legal clarity and infrastructure remain key issues
The IMF said tokenized equity markets are less liquid and more volatile than traditional markets. Their small size also limits current financial stability risks. Still, the report identified vulnerabilities tied to smart contracts, blockchain bridges, validators, oracles and other market infrastructure. Automated margin calls and rapid collateral transfers can add pressure during periods of market stress. The fund said legal certainty over ownership and settlement finality remains important as tokenized markets become more connected with established finance.
The IMF supports a technology-neutral approach to regulation and the principle of applying similar outcomes to similar risks. It also called for stronger interoperability, reliable settlement assets and safeguards for liquidity. Tokenized stocks already show measurable demand for 24-hour access and fractional ownership. At the same time, trading remains fragmented and smaller than conventional equity markets. The latest findings place tokenized equities between growing user demand and the practical limits of current market structure.