IMF: Over Half of Tokenized Stock Trading Occurs Outside Regular Hours
The IMF analyzed tokenized US equity markets and found that more than half of trading volume occurs outside regular Wall Street hours, reflecting demand for round-the-clock access. Volatility in tokenized stocks was approximately 1.5 times higher than traditional counterparts, though the fund cautioned that building deep and resilient markets remains a challenge.
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IMF Analysis of Off-Hours Trading
The International Monetary Fund examined tokenized US stock trading and found that over 50% of volume in its five-product sample occurred outside standard market hours, according to CryptoSlate. The concentration of trades during extended and overnight windows reflects genuine demand for 24/7 market access that traditional equities cannot provide, the fund noted in its analysis.
Volatility Premium in Tokenized Markets
Tokenized equity prices exhibited roughly 1.5 times the volatility of their traditional counterparts, the IMF's data showed. The fund attributed some of this elevated volatility to lower liquidity depth during off-hours trading windows, when fewer participants are active and order books are thinner than during regular US trading sessions.
Structural Challenges Ahead
While the IMF acknowledged genuine demand for continuous access, it cautioned that tokenized equity markets have not yet developed the depth and resilience required to sustain round-the-clock trading safely. The fund's findings suggest that wider adoption of tokenized stocks will depend on market infrastructure improvements and sufficient participant growth to maintain price stability across all trading windows.
Why It Matters
For Traders
Off-hours volatility 1.5x higher than traditional equities creates wider spreads and slippage outside US market hours; factor this into execution timing.
For Investors
Growing tokenized equity volume signals market demand for 24/7 trading, but elevated volatility and liquidity fragmentation suggest the infrastructure is still developing.
For Builders
Market-makers and liquidity providers need improved depth-management tools to serve extended trading windows without widening spreads during low-participation periods.
This article is for information only and is not financial advice. Read the full disclaimer.
