{"id":14411,"date":"2026-10-13T09:42:52","date_gmt":"2026-10-13T09:42:52","guid":{"rendered":"https:\/\/cryptonews.uk.com\/?p=14411"},"modified":"2026-10-13T09:42:52","modified_gmt":"2026-10-13T09:42:52","slug":"imf-finds-most-tokenized-stock-trades-involve-less-than-one-share","status":"publish","type":"post","link":"https:\/\/cryptonews.uk.com\/?p=14411","title":{"rendered":"IMF finds most tokenized stock trades involve less than one share"},"content":{"rendered":"

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More than half of sampled tokenized US stock trading occurs outside Wall Street’s regular hours, the International Monetary Fund (IMF) found.<\/p>\n

The IMF’s October Global Financial Stability Report also showed that approximately 80% of tokenized equity transactions involved less than one share, providing evidence of demand for fractional investments and around-the-clock access to American securities.<\/p>\n

However, the study found that tokenized equities experienced roughly 50% higher realized volatility than their traditional counterparts, while fragmented trading venues offered significantly weaker liquidity.<\/p>\n

The findings come as exchanges and financial institutions expand efforts to bring US equities onto blockchain infrastructure, potentially challenging conventional market hours and settlement arrangements.<\/p>\n

Tokenized stock prices reflect overnight market activity<\/h2>\n

The IMF examined five of the most actively traded tokenized US equity products issued by Ondo and xStocks, covering exposure to the S&P 500, Nasdaq, Tesla, Alphabet and Nvidia.<\/p>\n

The analysis covered 11 centralized and decentralized trading venues, with more than 2 million five-minute price and trading-volume observations collected over 365 trading days.<\/p>\n

The sampled products represented approximately $345 million in market value, or 15% of the $2.3 billion tokenized equity market as of July 31.<\/p>\n

The trading patterns showed that investors were actively using features unavailable during conventional US stock-market sessions.<\/p>\n

More than half of trading volume occurred outside the regular 9:30 a.m. to 4 p.m. Eastern session, including overnight and weekend periods.<\/p>\n

The IMF said the activity suggested demand from investors operating in different time zones and those seeking to respond to market developments without waiting for American exchanges to reopen.<\/p>\n

The predominance of transactions smaller than one share also pointed toward a retail-oriented market, although the researchers inferred that participation from trade sizes rather than directly identifying individual investors.<\/p>\n

More significantly, the study found that overnight tokenized-stock prices contained information subsequently reflected in conventional equity markets.<\/p>\n

Using centralized-exchange data, IMF researchers compared overnight tokenized price movements with the performance of their underlying securities during the first five minutes of the next US trading session.<\/p>\n

The estimated pass-through ranged from 87% to 99%, indicating a strong relationship between overnight tokenized returns and subsequent price adjustments in traditional markets.<\/p>\n

The findings suggest that tokenized venues can reflect information while conventional exchanges are closed, although the analysis does not establish that on-chain trading causes the corresponding price movements.<\/p>\n