Tokenized stocks need more than 24/7 trading to solve liquidity problem, Gravity Team CEO says
RWA Signal Insight
StocksGravity Team CEO Mārtiņš Beņķītis highlights that tokenized equities face significant liquidity hurdles due to the disconnect between 24/7 blockchain trading and traditional market settlement hours. Because market makers cannot hedge positions when conventional exchanges are closed, large trades often trigger high volatility and price slippage. An IMF report corroborates these findings, noting that tokenized stocks exhibit 1.5 times the realized volatility of their traditional counterparts. Beņķītis emphasizes that robust redemption mechanisms and pre-funded capital are essential to bridge the gap between on-chain tokens and underlying securities. Meanwhile, the proposed OKXICE platform faces mounting resistance, with 38 major companies including Walmart and JPMorgan Chase formally objecting to the tokenization of their shares. This friction underscores the broader challenge of aligning blockchain-based settlement with legacy banking and regulatory frameworks. Ultimately, the long-term viability of tokenized stocks depends on issuer cooperation and the ability to maintain price parity through reliable creation and redemption cycles.
Key points
- IMF data shows tokenized equities exhibit 1.5 times the volatility of traditional stocks.
- 38 major companies, including Walmart and JPMorgan, have objected to OKXICE tokenization plans.
- Gravity Team reports that liquidity providers struggle to hedge during traditional market closures.
- Reliable on-chain redemption mechanisms are critical for maintaining price parity with underlying assets.
Background
Gravity Team is a market-making firm founded in 2017 that provides liquidity across more than 40 cryptocurrency exchanges. OKXICE is a proposed trading venue backed by OKX and the Intercontinental Exchange designed to offer 24/7 trading of tokenized U.S. equities using stablecoin settlement under SEC innovation exemptions.