IMF finds tokenised stocks face liquidity risks

• Tokenised equities offer round-the-clock trading and fractional ownership, but remain less liquid than traditional stocks.
• The International Monetary Fund estimates the tokenised equity market at $2.3 billion, with volatility around 1.5 times higher than conventional markets.
• The IMF calls for clearer regulation, stronger market infrastructure and safeguards as tokenisation expands.

The International Monetary Fund (IMF) has identified growing demand for tokenised stocks alongside persistent liquidity problems and higher price volatility.

The IMF estimates tokenised equities reached $2.3 billion by July 2026, while two platforms accounted for more than 70% of market value.

“Tokenized equity markets are considerably less liquid than traditional markets,” the IMF said in its October 2026 Global Financial Stability Report.

The report found tokenised equities were approximately 1.5 times more volatile than equivalent stocks traded on traditional markets.

More than 50% of tokenised equity trading occurs outside regular US market hours, while around 80% of trades involve less than one share.

The IMF also found tokenised stock prices generally track their traditional counterparts, with higher-volume trading venues showing closer price alignment.

The report identifies legal certainty, regulatory clarity, network interoperability and reliable settlement assets as key barriers to broader adoption.

The findings point to growing investor interest in tokenised equities, but wider adoption will depend on stronger liquidity and market safeguards.