IMF Finds Tokenized Stocks Carry Higher Volatility and Fragmentation

The report, featured in the October 2026 Global Financial Stability Report, analyzed 365 days of trading data across centralized and decentralized platforms. Researchers found that more than half of all tokenized equity transactions occur outside of standard U.S. market hours, signaling a clear demand for continuous access. Furthermore, 80% of these trades involve quantities smaller than one full share, highlighting the sector's role in enabling retail-driven fractional investment.

Despite this growth, the IMF identified significant structural risks. Tokenized markets remain prone to sharper price swings, particularly on decentralized exchanges where liquidity is thinner. While these assets often mirror the performance of traditional shares during standard market hours, the lack of robust settlement systems and clear regulatory frameworks creates vulnerabilities. With the tokenized equity market valued at approximately $2.3 billion—a fraction of the $160 trillion global equity market—the IMF suggests that policymakers prioritize legal clarity, compatible settlement infrastructure, and stronger liquidity safeguards before these products scale further.