The International Monetary Fund reports that over 50% of tokenized equity trading occurs outside standard U.S. market hours. Retail interest is significant, with approximately 80% of trades involving fractional shares. The study analyzed five liquid tokenized U.S. equities, including those tracking Tesla, Nvidia, and the S&P 500, across 11 venues over a one-year period.
Data indicates that onchain prices reflect market information, as traditional shares absorbed 87% to 99% of overnight price movements seen in tokenized versions. However, tokenized assets remain roughly 1.5 times more volatile than underlying stocks and suffer from lower liquidity, especially on decentralized exchanges where price deviations are more frequent.
The total market valuation for tokenized stocks is approximately $2.3 billion. The sector is highly concentrated, with Ondo Finance and Backed Finance’s xStocks controlling over 70% of the market. These platforms primarily issue synthetic tokens that provide price exposure rather than direct ownership of the underlying company shares.
The IMF advises caution due to the early stage of the market, noting that systemic risks are currently limited. The organization recommends that regulators implement circuit breakers for 24/7 trading environments. Meanwhile, major institutions are expanding their presence: the NYSE is working with Blockchain.com and OKX, while Securitize has integrated stocks like Nvidia and Apple onto the Solana network.
