Most Tokenized Stock Trading Happens Outside U.S. Market Hours, IMF Finds
By Unchained
AI summary of the source article
More than half of tokenized U.S. stock trading occurs outside regular market hours, driven primarily by retail investors, according to the IMF. The report found tokenized equity markets are more volatile and fragmented, recommending regulators implement safeguards like circuit breakers.
Why it matters
The IMF stated the central question is "whether tokenized market infrastructure, legal foundations, liquidity arrangements, and risk controls are adequate if tokenization were to achieve broader adoption."
Key facts
- The IMF's Global Financial Stability Report found more than half of tokenized U.S. stock trading happens while Wall Street is closed, with about 80% of trades for less than a single share.
- As of July 31, the tokenized equity market stood at approximately $2.3 billion, with Ondo Finance and Backed Finance holding over 70% of the market value.
- Realized volatility on tokenized venues was around 1.5 times that of traditional shares, leading the IMF to recommend authorities design circuit breakers and liquidity safeguards.
Source excerpt · Unchained
The fund's study of Ondo and xStocks tokens found most trades are for less than one share, and their overnight moves show up in the real stocks minutes after the open. The post Most Tokenized Stock Trading Happens Outside U.S. Market Hours, IMF Finds appeared first on Unchained .