The International Monetary Fund (IMF) has observed a rising interest in tokenized stocks, highlighting that while they offer appealing benefits, the market remains unstable and illiquid.
Investors are leveraging blockchain shares for smaller transactions and after-hours trading, but the IMF warns of lagging liquidity, legal frameworks, and settlement systems.
By Olivier Acuna|Edited by Sheldon RebackOct 11, 2026, 9:00 a.m. EDT
Tokenized U.S. stocks provide continuous trading opportunities and fractional ownership, with over half of all trades taking place outside standard market hours. Approximately 80% of these transactions involve less than one share, according to the IMF.
The IMF's Global Financial Stability Report, titled "Scaling Tokenization: New efficiencies and new vulnerabilities," analyzes the five most frequently traded tokenized U.S. equities, including Tesla (TSLA), Nvidia (NVDA), and Alphabet (GOOG), across both centralized and decentralized trading platforms.
More than half of the trading activity occurred outside of regular U.S. market hours, demonstrating that investors appreciate the advantages of 24/7 access and the ability to invest with lower amounts. The report indicates that the overnight price movements of tokenized stocks tend to provide valuable insights, as over 85% of these movements are reflected in traditional shares within five minutes of market opening.
Gracy Chen, CEO of Bitget, noted, "Moving assets on-chain is only the first step. The bigger question is how efficiently that capital can work once it is there."
The IMF emphasizes that while the demand for tokenized stocks is evident, the market is still in its infancy. The report estimates the tokenized real-world asset (RWA) market to be approximately $65 billion as of July 31, with tokenized equities making up around $2.3 billion. In contrast, the global equity market capitalization for 2025 is projected to be just under $160 trillion, as reported by the Securities Industry and Financial Markets Association (SIFMA).
Despite the challenges, the tokenization trend is gaining momentum. Bullish (BLSH), a crypto firm based in Gibraltar and CoinDesk's parent company, launched tokenized equity trading in August. Recently, OKX and the Intercontinental Exchange (ICE), which operates the New York Stock Exchange, filed plans for a platform that would enable continuous trading of tokenized U.S. stocks.
Other crypto exchanges, including Coinbase Global (COIN), Kraken, and Binance, along with Robinhood Markets (HOOD), are also entering the tokenized stock trading arena.
The IMF's analysis indicates that tokenized stocks exhibit approximately 1.5 times greater volatility compared to their traditional counterparts and are significantly less liquid.
A major issue is not only the small size of blockchain markets but also the need for sufficient issuers, investors, trading platforms, and compatible settlement assets to realize the promised efficiencies in cost and time. Currently, the market is fragmented across private platforms, public blockchains, custodians, and settlement tools that often lack interoperability.
According to the IMF, tokenization has the potential to automate manual processes such as record reconciliation, dividend payments, and collateral transfers. However, it cautions that automated margin calls, liquidations, and round-the-clock trading could complicate market stability during shocks.
While the risks associated with tokenized markets are currently minimal due to their size, the IMF's report stresses that legal frameworks regarding ownership, liquidity safeguards, system interconnectivity, and settlement processes need to be established before the market can expand significantly.