IMF cautions that tokenized equity markets may increase financial volatility and liquidity risks

According to Cointelegraph, the International Monetary Fund found that tokenized equity markets are less liquid and more volatile compared with traditional markets, even as demand for continuous 24/7 trading grows. The assessment reflects observations during ongoing analysis of market developments involving tokenized assets.

The IMF’s findings pertain specifically to tokenized equity markets and highlight reduced liquidity relative to conventional markets. Increased volatility was also identified as a characteristic concern in these emerging market structures, despite rising interest in the ability to trade around the clock.