IMF finds real demand for tokenized stocks but warns of liquidity and stability gaps
Investors are already trading tokenized stocks — but the IMF sees limits
The International Monetary Fund has published a new study finding that people are actively using blockchain-based versions of U.S. stocks to trade outside regular market hours and buy fractions of a share. However, the IMF also warned that these tokenized equities are still highly volatile and lack the liquidity of traditional stocks, meaning it is often harder to sell them quickly at a fair price.
The research appears in the IMF's October 2026 Global Financial Stability Report, titled "Scaling Tokenization: New efficiencies and new vulnerabilities."
Key numbers from the study
- More than half of tokenized stock trading happened outside normal U.S. market hours.
- About 80% of trades were for less than one share, showing demand for lower entry points.
- Over 85% of overnight price moves in tokenized shares were reflected in traditional stocks within five minutes of U.S. markets opening.
- The total tokenized real-world asset market was estimated at roughly $65 billion as of July 31, 2026.
- Tokenized equities made up about $2.3 billion of that total.
- The 2025 global equity market capitalization was just under $160 trillion.
What the IMF says about the current state of the market
The IMF examined five of the most actively traded tokenized U.S. equities, including Tesla (TSLA), Nvidia (NVDA), and Alphabet (GOOG), as well as measures such as the Nasdaq 100 Index. The study looked at both centralized and decentralized trading platforms.
The fund concluded that tokenized equities are delivering two benefits that crypto has long promised: around-the-clock trading access and the ability to own a fraction of a share. But it also found that these markets are far less liquid and more volatile than the traditional stocks they track.
The IMF said the tokenized equity market remains small and fragmented, and that it needs stronger legal frameworks, better liquidity safeguards, and improved interoperability between platforms before it can match the reliability of conventional stock markets.
Industry players are still building out
Despite the IMF's caution, the tokenization space is continuing to grow. Bullish (BLSH), a Gibraltar-based crypto company, launched tokenized equity trading in August 2026. Earlier in October, OKX and Intercontinental Exchange (ICE), the owner and operator of the New York Stock Exchange, filed plans for a new trading venue offering tokenized stocks.
Gracy Chen, CEO of crypto exchange Bitget, said moving assets onto a blockchain is only the first step, adding that the bigger question is how efficiently that capital can work once it is there.
Why this matters
Tokenized stocks represent one of the most concrete uses of blockchain technology in mainstream finance. Investors can trade shares on a 24/7 basis, and smaller amounts of money can buy into a company. The IMF's data suggests people are already doing this, not just testing the concept.
But the same study highlights that the infrastructure behind these markets is not yet ready. Thin trading volumes mean prices can swing sharply on small orders. Legal rules around ownership and investor protection are not fully developed. And different platforms do not always connect smoothly with each other, which limits how easily assets can move between venues.
For anyone considering tokenized equities, the IMF's findings point to a real but still early stage of development. The use case is confirmed. The supporting systems need more work.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.