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IMF Report Finds Most Tokenized Equity Trading Occurs Outside Regular Market Hours

(3 hours ago) · 1 source · Summarized by CryptoBipto

A report from the International Monetary Fund has found that the majority of trading in tokenized equities takes place outside of traditional stock market hours. The finding highlights one of the key use cases proponents have cited for bringing traditional financial assets onto blockchain infrastructure.

WHY IT MATTERS

When you buy a stock on a traditional exchange like the New York Stock Exchange, you can usually only do so during set business hours on weekdays. Think of it like a store that is only open from 9:30 a.m. to 4 p.m. Tokenized equities are like digital versions of those same stocks, but they live on a blockchain — a type of shared digital ledger — which can operate around the clock, every day of the week. The IMF, a major global financial organization, found that most people trading these tokenized stocks are doing so when the traditional markets are closed. This matters because it suggests that one of the biggest reasons people use blockchain-based versions of traditional assets is the ability to trade whenever they want, not just during limited hours. For anyone learning about crypto, this is a real-world example of how blockchain technology could change the way traditional finance works.

The International Monetary Fund has published research indicating that most trading activity in tokenized equities — digital representations of traditional stocks recorded on blockchains — occurs when conventional stock exchanges are closed.

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  • thedefiant.io

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TokenizationReal-World AssetsTraditional FinanceIMFEquity Markets