WASHINGTON, Oct. 12 (CandyPulse) — Tokenized stocks have found a real audience, made up largely of people buying fractions of a share at hours when Wall Street is closed. According to the International Monetary Fund, that audience is also paying for it in volatility.
In its October 2026 Global Financial Stability Report, published Oct. 8, the IMF found that tokenized equities are about 1.5 times as volatile as the shares they represent. It said part of the reason is thin liquidity, and part is trading that runs around the clock, including the quiet hours when fewer buyers and sellers are around to absorb orders.
Key takeaways
The findings, in Chapter 3, "Scaling Tokenization," support two claims that sound contradictory. People are clearly using tokenized stocks. The markets they use are also thinner and jumpier than the exchanges where those stocks normally trade.
Both claims hold up. The demand shows in the trading patterns. The risk shows in how prices behave when an order lands in a market with few participants on the other side.
The IMF does not dismiss tokenization as a fad, nor does it claim the sector threatens the financial system today.
The trading data gives a fairly clear picture of who these users are.
More than half of tokenized-equity trading happens outside regular U.S. market hours. Around 80% of trades involve less than one share. That suggests small buyers, many of them likely outside the United States, who want exposure to U.S. companies on their own schedule and in amounts they can afford.
For someone in another time zone, the New York trading day can fall in the middle of the night. A token that trades on a Sunday, or in a slice worth a few dollars, fills that gap.
Liquidity, the ease of buying or selling without moving the price, is where tokenized stocks fall short.
The IMF found conventional equity markets were the most liquid of the venues it compared, and decentralized exchanges were the least. On tokenized platforms, trades move prices more because fewer participants are there to absorb orders.
There is some good news. Prices generally track the underlying shares, and higher-volume venues show closer alignment.
| Metric | IMF finding |
|---|---|
| Volatility vs. traditional shares | About 1.5 times higher |
| Market size (July 2026) | About $2.3 billion |
| Share of market value on top two platforms | More than 70% |
| Trading outside regular U.S. hours | More than 50% |
| Trades smaller than one share | Around 80% |
| Most liquid venue | Conventional equity markets |
| Least liquid venue | Decentralized exchanges |
Figures differ slightly between the outlets that reported on the chapter, including CoinDesk, so treat them as approximate.
At about $2.3 billion, tokenized equities are tiny next to global stock markets. The IMF says systemic risks are limited for now.
The warning concerns growth. As these markets get bigger, the IMF said, interconnectedness and leverage could amplify familiar stresses: fire sales, liquidity runs and contagion. None of these is specific to crypto; they are the usual ways a crowded trade turns disorderly.
Concentration adds to the concern. When two platforms hold more than 70% of market value, trouble at either one would affect a large part of the market.
The industry is not waiting. CandyPulse previously reported that OKX and ICE, the owner of the New York Stock Exchange, filed with the U.S. Securities and Exchange Commission for a 24/7 tokenized U.S. stock venue designed to preserve dividend and voting rights.
The IMF's most concrete recommendation is that regulators consider circuit breakers for 24/7 trading.
A circuit breaker is an automatic pause. On conventional exchanges, trading in a stock or a whole market halts briefly when prices fall or rise too far, too fast. The pause gives liquidity time to return and keeps a panic from feeding on itself.
Markets that never close have no closing bell to provide that break, so the IMF suggests regulators may need to build one in.
The report also calls for clearer ownership rules, compatible settlement systems, stronger liquidity safeguards and better market oversight.
If you trade tokenized stocks, the findings suggest a few habits.
Check liquidity before you trade. Look at the gap between the buy and sell price. A wide spread means a thin market, and a large order there can move the price against you.
Be careful off-hours. The IMF linked part of the extra volatility to trading at times when fewer participants are active.
Prefer busier venues. The IMF found that higher-volume platforms track the underlying shares more closely.
Know what you own. Some tokens are designed to carry dividends and votes; others may only track a price. The IMF's call for clearer ownership rules is a reminder to read the terms.
The IMF's recommendations are not binding. Whether regulators adopt circuit breakers, ownership standards or liquidity rules for tokenized stocks will be up to national authorities.
Watch for the outcome of the OKX and ICE filing, and for whether other big exchanges follow them into round-the-clock tokenized trading. The IMF's argument is that the time to build safeguards is now, while the market is small and systemic risk is limited.
This article is for information only and is not financial advice. Tokenized stocks may not carry the same rights or protections as the underlying shares.