REALITY CHECK | IMF Says Tokenized Stock Market Remains Tiny and Volatile Over Traditional Counterparts

The tokenized stock market is worth about $2.3 billion highlighting the gap between growing institutional interest in on-chain securities and the market’s limited scale, according to the International Monetary Fund (IMF). The market remains concentrated, with Ondo Finance and Backed Finance’s xStocks accounting for more than 70% of its value. Despite the growing interest, tokenized equities remain significantly less liquid and more volatile than their traditional counterparts, the IMF found. The IMF’s analysis found that more than 50% of tokenized stock trading takes place outside regular U.S. market hours while about 80% of trades involve less than one full share.