IMF finds tokenised equities are 1.5 times more volatile
RWA Signal Insight
StocksThe International Monetary Fund (IMF) reported that the tokenized real-world asset market reached $65 billion by July 2026, with tokenized equities accounting for approximately $2.3 billion of that total. An analysis of five tokenized U.S. equity products across 11 venues revealed that these assets exhibit 1.5 times the realized volatility of traditional shares. While the data shows strong demand for fractional ownership and 24/7 trading, with over half of transactions occurring outside standard U.S. market hours, liquidity remains a significant concern. Decentralized exchanges were found to have the weakest liquidity and highest volatility, often leading to sharper price movements compared to higher-volume platforms. The IMF emphasized that while blockchain offers potential for improved settlement and collateral management, it currently introduces risks related to market fragmentation. Policymakers are urged to prioritize legal certainty, platform interoperability, and robust regulatory safeguards to mitigate potential systemic stress. Ultimately, the report suggests that the future of tokenized equities depends on addressing these structural weaknesses to evolve beyond a niche trading mechanism.
Key points
- Tokenized equity market reached $2.3 billion out of a $65 billion total RWA market.
- Tokenized shares show 1.5 times the realized volatility of traditional equity counterparts.
- Over 50% of tokenized equity transactions occur outside standard U.S. stock market hours.
- IMF identifies liquidity fragmentation and regulatory clarity as primary barriers to institutional adoption.
Background
The International Monetary Fund (IMF) is an international financial institution focused on fostering global monetary cooperation and financial stability. Its Global Financial Stability Report provides regular assessments of the global financial system, identifying risks and recommending policy frameworks to ensure economic resilience. In the context of RWA, the IMF evaluates how emerging blockchain technologies interact with traditional financial market infrastructures.