Tokenized stocks are attracting attention as Nasdaq prepares to introduce 23-hour weekday trading on December 6. Bitfinex cited International Monetary Fund research showing that 87%–99% of overnight tokenized equity price movements appeared in conventional securities within five minutes of market opening.
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In an October 23 report, Bitfinex noted that tokenized shares give traders constant access to financial markets when the blockchain market is trading, despite the stock market being shut down.
Nevertheless, the IMF did not establish any causation between the tokenized markets and conventional stock prices. In fact, the results of the study indicate high correlation between opening prices and overnight returns.
What Did the IMF Find About Tokenized Stocks?
October’s Global Financial Stability Report of the International Monetary Fund analyzed the link between tokenized stocks and conventional securities. Researchers considered five exposures that were quite liquid and included S&P 500, Nasdaq 100, Tesla, Alphabet, and Nvidia.
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They considered Ondo and xStocks products on 11 trading venues. It is worth noting that the sample constituted about $345 million, or 15% of the total tokenized equity market, on July 31.
It was established that over half of the tokenized stock transactions were made outside the regular hours of US markets. Overnight prices were transferred to conventional prices with 87% to 99% pass-through during the first five minutes of trading.
Nevertheless, scientists found several market risks related to tokenized stocks. Scientists observed about 1.5 times higher realized volatility of tokenized stocks and lower liquidity in comparison with conventional stocks.
The low liquidity was especially pronounced on decentralized platforms. The IMF also noted higher pricing mistakes in venues with fewer transactions.
When Will Nasdaq Introduce Extended Trading?
Nasdaq is scheduled to introduce overnight trading starting from December 6. Based on the official schedule of the exchange, it will trade from 9 p.m. to 4 a.m. Eastern time.
The new initiative is set to facilitate 23 hours of trading every weekday, as there will be a break from 8 p.m. to 9 p.m. for maintenance purposes and then no weekend trading.
Source: Finance.biggo
The traditional session of Nasdaq will be maintained at 9:30 a.m. to 4 p.m. The exchange intends to maintain the existing opening and closing auctions.
Nevertheless, the introduction of the new feature is subject to certain conditions. Namely, it relies on the development of necessary market data infrastructure, as well as regulation changes. Also, the schedule is applicable to the Nasdaq Stock Market and not to all exchanges run by the company.
Jesse Knutson, executive of Bitfinex Securities, stated that the trading restrictions may increase the volatility near the opening times.
How Fast Is the Tokenized Stocks Market Growing?
Tokenized stocks have been growing throughout 2026 based on findings released in an October 16th DWF Labs report. It found that the market capitalization stood at $3.8 billion within the week of October 5.
This was a growth of 483% compared to approximately $654 million in January. Trading on decentralized exchanges hit $2.54 billion compared to $45.8 million in the early part of the year.
Nevertheless, the trading activities for October did not rise above the $7.26 billion per week high achieved in late August. DWF Labs also revealed that there were $313 million worth of tokenized stocks utilized in decentralized finance on October 15.
Transfers involving blockchain technology amounted to $17.5 billion per week. This is inclusive of wallet-to-wallet transfers and loans rather than just trading through exchanges.
Why Do Liquidity Risks Remain?
Even as tokenized stock trading becomes more active, concerns persist over quality of execution and investor appetite. In September, TD Cowen reported that US investors have efficient access to traditional shares.
The investment bank highlighted that blockchain-enabled platforms require a unique value proposition to make up for lower liquidity and technical complexity. Availability is insufficient to ensure competitive pricing. In addition, Morgan Stanley rescheduled its anticipated tokenized equity offering to 2027Q1.
Currently, tokenized stocks offer investors another avenue for trading in addition to extending the operational period of the traditional exchange. The IMF study identifies overnight price discovery in emerging markets, while liquidity, regulatory, and market protection issues still stand out.
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