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Tokenized equities changed hands at roughly 1.5 times the realized volatility of the underlying shares, and more than half of that trading took place outside regular U.S. market hours, according to a study from the International Monetary Fund described by Crypto.news.
The October 8 report, “Scaling Tokenization: New Efficiencies, New Vulnerabilities,” forms Chapter 3 of the IMF’s October 2026 Global Financial Stability Report. It draws on centralized and decentralized trading data covering 365 trading days and more than 2 million observations recorded at five-minute intervals. Decrypt also covered the findings, reporting that the roughly $2.3 billion market remains more volatile and less liquid than traditional equities.
Also readNEAR adds 20 tokenized US stocks via Ondo
Key facts
- Tokenized equities showed about 1.5 times the realized volatility of equivalent traditionally traded stocks, the IMF found.
- More than 50% of tokenized equity trading occurred outside regular U.S. market hours, which normally run 9:30 a.m. to 4 p.m. Eastern Time on business days.
- Approximately 80% of examined tokenized equity trades involved quantities smaller than one conventional share.
- The public tokenized real-world asset market reached about $65 billion as of July 2026, with $2.3 billion in equities, $30.4 billion in tokenized credit and $17.5 billion in money market funds.
- Between 87% and 99% of overnight tokenized price information was reflected in traditional market prices during the first five minutes of regular U.S. trading.
Small trades done after hours
The IMF examined five actively traded tokenized U.S. equity products, covering Tesla, Nvidia, Alphabet, the S&P 500 and Nasdaq-linked exposure, across 11 trading venues. Its sample covered approximately $345 million in tokenized equity value, about 15% of the total tokenized stock market measured in the report. Products issued by Ondo Finance and xStocks were included. Decrypt added that Ondo and Backed Finance’s xStocks together account for more than 70% of the market and that both issue synthetic tokens offering price exposure rather than direct share ownership.
Researchers read the small trade sizes as evidence of demand for fractional ownership, particularly among individual investors, and noted that smaller retail-oriented transactions dominated the sample while large institutional trades remained limited. The IMF cautioned that its findings concern an early-stage market whose patterns could shift as more participants enter.
Also readOndo Finance Brings 430+ Tokenized U.S. Stocks to Uniswap on Ethereum and BNB Chain
Volatility, liquidity and venue differences
Part of the volatility gap was attributed to limited liquidity and to continuous trading during hours when fewer buyers and sellers are present. The study ranked decentralized exchanges as the most volatile, followed by centralized cryptocurrency exchanges and then traditional stock markets. On liquidity, measured by how much prices move relative to volume traded, conventional equity markets were strongest and decentralized exchanges weakest.
Prices on tokenized platforms generally tracked their underlying shares while conventional markets were open, and higher-volume platforms stayed closer to traditional exchange prices. Decentralized venues recorded larger and more frequent divergences. The IMF said automated margin calls and liquidations, plus fast collateral transfers across connected platforms, could accelerate selling pressure during a financial shock, and it recommended evaluating circuit breakers and other controls against disorderly trading. Decrypt reported that the IMF urged regulators to consider circuit breakers for 24/7 trading.
Why it matters
Tokenized stocks remain a marginal slice of global equity markets, so the immediate read-through for mainstream investors is limited. What the data does show is that demand for round-the-clock and fractional share exposure is real, and that overnight trading on blockchains is not purely noise: most of it surfaced in traditional opening prices. For platforms and issuers, the study sets out conditions for scaling safely, including clearer legal rights over tokens, compatible settlement systems and stronger liquidity safeguards. The IMF did not issue binding rules or set a deadline for jurisdictions.
What to watch
How existing tokenization programs perform under stress. The SEC-approved tokenized securities pilot involving Nasdaq covers specified shares and exchange-traded funds from the Russell 1000 and certain index-linked funds. Separately, Nasdaq and Kraken parent Payward expect Nasdaq Equity Tokens to become available in the second quarter of 2027, subject to development and regulatory conditions. In October, Securitize expanded tokenized U.S. stock access through Solana with products linked to 12 publicly traded businesses, after Bullish began trading tokenized versions of its own listed shares on August 12.
This article is not financial advice, and crypto and tokenized asset markets are volatile and uncertain.
Sources: crypto.news, Decrypt
