The International Monetary Fund has warned that tokenized markets could amplify financial risks, according to a Techub News brief citing Cointelegraph. The IMF said demand for 24/7 trading continues to rise, but its findings point to weaker market quality in tokenized equities than in traditional venues. Specifically, the organization said tokenized stock markets show lower liquidity and higher volatility than conventional markets. The warning ties the appeal of around-the-clock trading to a market structure that, in the IMF’s view, may carry added risk rather than reduce it. No further details were provided in the brief beyond the IMF’s assessment and the comparison with traditional markets.
The International Monetary Fund (IMF) is warning that tokenized markets could magnify financial risks, according to a Techub News brief that cited Cointelegraph.
The IMF said appetite for 24/7 trading is rising. But tokenized stock markets still show lower liquidity and higher volatility than traditional markets.
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