IMF Finds Over Half of Tokenized U.S. Stock Trading Occurs Outside Wall Street Hours

Yahoo Finance ·

More than half of all trading in tokenized U.S. stocks takes place while Wall Street is closed, according to fresh data from the International Monetary Fund. Released on Oct. 8 within the Global Financial Stability Report, the findings show the tokenized equity market reached approximately $2.3 billion as of July 31. IMF researchers analyzed liquid tokens from Ondo Finance and Backed Finance, discovering that roughly 80% of trades involved less than a single share, pointing to heavy retail participation. Realized volatility on these venues ran about 1.5 times higher than traditional shares. While noting that systemic risks remain limited for now, the IMF urged authorities to design circuit breakers, liquidity safeguards, and enforce the principle of same activity, same risk, and same regulatory outcome as the market continues to evolve.

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According to an IMF report, over half of US tokenized stock trading occurs during Wall Street off-hours, reflecting demand from retail investors in regions with large time zone differences. Although the tokenized asset size remains small at 2.3 billion dollars, it offers new efficiencies such as 24-hour trading and fractional investing. However, 1.5 times higher volatility compared to traditional markets and liquidity fragmentation issues have been pointed out, drawing attention to future regulatory refinement.

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IMF survey results show that the active night trading of tokenized stocks proves global investors' demand for 24-hour accessibility, and price information is quickly reflected in underlying assets immediately after market opening. However, 1.5 times higher volatility and fragmented liquidity compared to traditional stocks are short-term risk factors.

In the bullish scenario, the convenience of 24-hour trading will be highlighted, accelerating the adoption of related blockchain infrastructure and tokenized platforms. In the bearish scenario, market shocks due to a lack of liquidity and regulatory voids are a concern, and future monitoring of regulatory authorities' introduction of circuit breakers and trading volume trends is necessary.

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