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IMF flags risks in tokenized U.S. stock trading

An IMF report finds more than half of tokenized stock trades happen after regular market hours, yet these shares are 1.5 times as volatile and considerably less liquid than conventional equities.

By Standard Topic. AI-generated from the reporting listed under Coverage. Published . Updated .

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What happened

The IMF, in its Global Financial Stability Report, found that over half of tokenized U.S. stock trading takes place outside market hours. Tokenized shares were found to be 1.5 times more volatile and much less liquid than traditional equities. Coverage described the tokenized stock market as still small.

Timeline

  1. Oct 11, 9:00 AM ET: The IMF Global Financial Stability Report findings on tokenized U.S. equities were reported, showing over half of trading occurs outside market hours.
  2. Oct 12, 3:00 AM ET: Crypto coverage reported that the IMF described the tokenized stock market as tiny and more volatile than traditional counterparts.

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