Tokenized U.S. stocks allow for round-the-clock trading and fractional ownership, with over half of trades occurring outside regular market hours and approximately 80% involving less than one share, according to a new International Monetary Fund (IMF) study. However, the IMF also found that these tokenized equities are significantly more volatile and less liquid than their conventional counterparts.
Key takeaways
- More than 50% of tokenized stock trades happen outside standard U.S. market hours, and about 80% are for less than one share.
- The IMF estimates the tokenized real-world asset (RWA) market at approximately $65 billion as of July 31, with tokenized equities accounting for about $2.3 billion.
- Tokenized stocks were found to be about 1.5 times as volatile as equivalent shares on traditional venues.
- Over 85% of overnight price movements in tokenized stocks are reflected in conventional shares within five minutes of market open.
- The IMF calls for stronger legal, liquidity, and interoperability safeguards for the nascent tokenized market.
Tokenized Stocks Offer Accessibility, but With Caveats
A recent study by the International Monetary Fund (IMF) highlights that tokenized U.S. stocks are delivering on two key promises of crypto: 24/7 trading and fractional ownership. The IMF's latest Global Financial Stability Report, titled "Scaling Tokenization: New efficiencies and new vulnerabilities," examined five actively traded tokenized U.S. equities, including Tesla (TSLA), Nvidia (NVDA), and Alphabet (GOOG), as well as the Nasdaq 100 Index. The study found that more than half of all trading in these tokenized assets occurred outside regular U.S. market hours, and roughly 80% of trades were for less than one share. These figures suggest that investors value continuous access and lower entry points, rather than just the underlying technology.
Despite these benefits, the IMF noted that tokenized equities remain markedly less liquid and more volatile than the conventional shares they track. Specifically, tokenized stocks were approximately 1.5 times as volatile as their traditional counterparts. The report also indicated that overnight price movements in tokenized stocks carried useful information, with over 85% of these movements reflected in conventional shares within five minutes of market opening.
A Nascent Market With Significant Growth Potential
The IMF's findings underscore that while the use case for tokenized assets is real, the market is still in its early stages. The tokenized real-world asset (RWA) market, which includes tokenized equities, has grown rapidly, reaching an estimated $65 billion as of July 31. Tokenized equities themselves accounted for about $2.3 billion of this total. To put this in perspective, the global equity market capitalization was just under $160 trillion in 2025, according to the Securities Industry and Financial Markets Association (SIFMA).
Despite its current small size, the tokenization project is expanding. Companies like Bullish (BLSH) introduced tokenized equity trading in August, and earlier this month, OKX and Intercontinental Exchange (ICE), which owns the New York Stock Exchange, filed plans for a venue offering round-the-clock trading in tokenized U.S. shares. Other major crypto exchanges, including Coinbase Global (COIN), Kraken, Binance, and Robinhood Markets (HOOD), also offer tokenized stock trading.
Challenges of Fragmentation and Risk Management
The IMF report identifies that the primary challenge for tokenization is not merely the small size of blockchain markets. To deliver on its promised cost and time savings, tokenization requires a sufficient number of issuers, investors, trading venues, and settlement assets on compatible systems. Currently, the market is fragmented across private platforms, public blockchains, custodians, and settlement tools that often lack interoperability, meaning they cannot easily exchange information or assets.
While tokenization could streamline processes such as reconciling records, automating dividend payments, and speeding up collateral transfers, it also introduces new risks. The IMF warned that automated margin calls, liquidations, collateral moving between platforms, and 24-hour trading could make a market shock more difficult to contain. Although these risks are currently small due to the market's nascent stage, the IMF emphasizes the need for developing clear legal rules on ownership, safeguards for liquidity, robust links between systems, and effective settlement arrangements before the market grows substantially.
What This Means for Bitcoin Holders
For Bitcoin holders, the growth and challenges of tokenized stocks offer insights into the broader evolution of digital assets and their integration with traditional finance. The demand for 24/7 trading and fractional ownership in tokenized equities mirrors some of the fundamental advantages Bitcoin itself offers. As the tokenized RWA market expands, it signals a growing acceptance and utility for blockchain technology beyond native cryptocurrencies. This trend could contribute to a more interconnected financial ecosystem where digital assets play a more central role.
However, the IMF's warnings about volatility, illiquidity, and the need for stronger regulatory frameworks are crucial. These concerns highlight the ongoing challenges in bringing traditional assets onto blockchain rails and the importance of robust infrastructure and clear legal guidelines. Understanding these developments can help Bitcoin holders contextualize the regulatory pressures and market dynamics that also influence the broader crypto space, including Bitcoin's own journey towards mainstream adoption and institutional integration.
Looking Ahead: Regulatory Clarity and Infrastructure Development
The IMF's report underscores that the future growth of tokenized assets, including tokenized stocks, hinges on addressing current fragmentation and establishing comprehensive regulatory frameworks. The call for stronger legal, liquidity, and interoperability safeguards suggests that policymakers and industry participants will need to collaborate to create a more secure and efficient market. This includes defining clear ownership rules for digital assets, ensuring adequate liquidity mechanisms, and developing technical standards that allow different blockchain systems and platforms to interact seamlessly.
As the market matures, the focus will likely shift towards building the necessary infrastructure to support larger volumes and more complex transactions. The ability to automate tasks and improve settlement efficiency remains a significant draw for tokenization. However, mitigating the risks associated with automated processes and continuous trading will be paramount to prevent systemic shocks. Bitcoin holders should monitor these developments closely, as regulatory decisions and infrastructure improvements in the tokenized RWA space could set precedents or influence the broader regulatory landscape for all digital assets.