IMF Study: Tokenized Equities See Most Trading After US Hours
According to the International Monetary Fund, the majority of transactions in tokenized US equities take place after the regular Wall Street session ends. The study examined five highly liquid tokenized equities, including assets tied to Tesla, Nvidia and Google, and reported roughly 1.5 times the volatility of conventional shares along with thinner liquidity. About 80% of the trades reviewed were for less than one share.
The IMF's Global Financial Stability Report reviewed five of the most liquid tokenized US equities, including assets linked to Tesla, Nvidia, and Google. It found that over half of their trading happened outside regular US market hours, a pattern unlike conventional exchange schedules. The report also noted these instruments were far less liquid than traditional shares.
Roughly four out of five trades in the studied tokenized equities were smaller than one full share. The IMF measured about 1.5 times the volatility of comparable conventional stocks. These figures describe observed activity in the sampled assets and do not by themselves explain why traders acted outside standard sessions.
Investors drawn to tokenized equities for round-the-clock access could face sharper price swings and thinner liquidity than they expect from conventional shares. Small fractional trades may widen participation, yet they may not ensure that larger positions can be exited smoothly. Platforms offering these products may face pressure to explain risks more clearly, while regulators could pay closer attention to trading outside standard hours. The IMF findings may encourage more cautious assessment of how these blockchain-based instruments fit into ordinary portfolios, especially for retail users comparing them with traditional brokerage accounts.