Crypto Trades 9-to-5? Tokenized Stocks Apparently Got Different Hours 📊

More than half of all trading in tokenized U.S. equities occurs outside regular U.S. market hours, according to the International Monetary Fund's latest Global Financial Stability Report. The IMF's findings, drawn from 365 days of activity across 11 venues and covering the five most liquid tokenized U.S. equities—including tokens tracking Tesla, Nvidia, and the S&P 500—show that onchain equity markets effectively run around the clock. About 80% of trades involve less than a full share, which the IMF described as evidence of strong retail demand for fractional ownership.

The data indicate onchain prices carry real informational weight. When traditional markets reopened, underlying shares absorbed 87% to 99% of the overnight price moves recorded by their tokenized versions, the fund said. Tokenized stocks are blockchain-based tokens that track publicly traded shares, and issuers including Ondo Finance and Backed Finance's xStocks offer synthetic tokens that provide price exposure without direct share ownership.

Drawbacks are equally pronounced. Tokenized equities were roughly 1.5 times more volatile than the underlying stocks and significantly less liquid, particularly on decentralized exchanges, where prices deviated further from traditional markets. The market remains small and concentrated at about $2.3 billion in value, with Ondo Finance and Backed Finance's xStocks accounting for more than 70% of activity, according to the IMF.

Given the market's early stage, the IMF said its findings "should be interpreted with caution" and that systemic risks remain limited for now. It urged regulators to consider circuit breakers for 24/7 trading and to monitor links to traditional markets more closely. Earlier this year, the fund warned that tokenized finance and stablecoins could amplify financial crises.

The report lands as heavyweights move into tokenization. The NYSE plans to reach crypto investors through Blockchain.com, and NYSE owner ICE is working with OKX on 24/7 tokenized stock trading under the SEC's new innovation exemption. Securitize has recently brought tokenized stocks—including Nvidia, Apple, and Amazon shares—to Solana, with additional blockchain networks planned. Cboe has struck an S&P deal for tokenized options, and Coinbase launched tokenized stocks for non-U.S. users on Base in August.