IMF warns of high volatility in tokenized stocks
Tokenized stocks have proven to be 1.5 times more volatile than traditional shares, despite allowing investors to trade around the clock and buy fractional shares. This is the conclusion reached by the International Monetary Fund (IMF) in a new study of the tokenized asset market.
According to the report, IMF researchers examined trading in five popular tokenized products linked to shares of Tesla, Nvidia and Alphabet, as well as the S&P 500 and Nasdaq indexes. The analysis covered 11 trading platforms, including centralized and decentralized exchanges.
The study found that more than 50% of tokenized stock trades took place outside regular U.S. stock market hours. Meanwhile, about 80% of transactions involved less than one share. According to the researchers, these findings confirm demand for round-the-clock trading and the ability to invest smaller amounts.
Tokenized stocks carry additional risks
Despite their advantages, tokenized stocks are significantly less liquid than traditional shares. Due to the limited number of market participants, even relatively small trades can trigger sharp price fluctuations. Volatility is particularly high on decentralized exchanges.
At the same time, price movements in tokenized assets can lead the traditional market. The study found that between 87% and 99% of overnight price information was reflected in conventional stock prices within the first five minutes after U.S. markets opened.
According to IMF estimates, the tokenized real-world asset market reached approximately $65 billion by the end of July 2026. However, tokenized stocks accounted for just $2.3 billion, while global stock market capitalization stood at nearly $160 trillion in 2025.
IMF calls for stronger market oversight
IMF experts noted that tokenization could accelerate settlement, automate dividend payments and simplify collateral transfers. However, the market's development is being hindered by incompatibilities between blockchain platforms, trading venues and settlement systems.
Automated liquidations and margin requirements pose additional risks. In a round-the-clock trading environment, they could accelerate sell-offs and amplify the impact of market shocks.
The IMF believes systemic risks remain limited for now due to the market's relatively small size. However, as the market grows, clearer rules governing ownership of tokenized assets, additional liquidity safeguards and consistent regulatory approaches will be needed.
As a reminder, the tokenized stock market is growing rapidly.
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