Gravity Team CEO Mārtiņš Beņķītis argues that tokenized stocks require more than 24/7 trading to address liquidity issues. Reliable redemption mechanisms and significant capital commitments from market makers are essential to handle large trades, especially when traditional stock exchanges are closed.
A report from the International Monetary Fund in October noted that tokenized equities show approximately 1.5 times the realized volatility of traditional stocks. The IMF linked this to continuous trading during periods of low volume, which causes price deviations from underlying assets.
Market makers face risks when they cannot hedge exposure during weekends or overnight sessions. The ability to create and redeem tokens against underlying shares is critical to maintaining liquidity, but this process depends on predictable settlement and sufficient capital.
The expansion of the OKXICE platform faces resistance from publicly traded companies. As of October 29, 38 companies, including Walmart, Eli Lilly, and JPMorgan Chase, have objected to having their shares represented on the venue.
Gravity Team, which was founded in 2017, reports a cumulative spot trading volume exceeding $500 billion. The firm currently maintains connections to more than 40 cryptocurrency exchanges.
