IMF finds over half of tokenized US stock trading happens after Wall Street closes

What happened

More than half of sampled tokenized (representing an asset as a tradable entry on a blockchain) US stock trading occurs outside Wall Street's regular hours, the International Monetary Fund (IMF) found. However, the study found that tokenized equities experienced roughly 50% higher realized volatility than their traditional counterparts, while fragmented trading venues offered significantly weaker liquidity.

More than half of volume in the five-product sample came outside regular US hours, while volatility was about 1.5 times that of traditional counterparts. The IMF's October Global Financial Stability Report also showed that approximately 80% of tokenized equity transactions involved less than one share, providing evidence of demand for fractional investments and around-the-clock access to American securities. The findings come as exchanges and financial institutions expand efforts to bring US equities onto blockchain infrastructure , potentially challenging conventional market hours and settlement arrangements.

Key facts

• However, the study — found: that tokenized equities experienced roughly 50% higher realized volatility than their traditional counterparts, while fragmented trading venues offered significantly weaker liquidity