Tokenized Stocks Need Redemption and Liquidity, CEO Says
Tokenized stocks need more than 24/7 trading to attract larger trades, Gravity Team CEO Mārtiņš Beņķītis said. Market makers need enough capital to manage inventory and hedge risk when traditional exchanges are closed. Reliable redemption into underlying shares, predictable settlement and access to securities are also essential to keep token prices close to stock prices.
An October report by the International Monetary Fund found tokenized equities are significantly less liquid than traditional stocks and have about 1.5 times their realized volatility. Weekend trading and lower trading volumes can contribute to sharper price deviations. Stablecoin conversion and local banking restrictions may add costs, particularly in emerging markets.
Separately, 38 public companies have objected to having tokenized shares represented on OKXICE, a proposed venue backed by OKX and Intercontinental Exchange. The platform plans around-the-clock trading with stablecoin settlement under the SEC’s Innovation Exemption. The objections highlight issuer acceptance as another challenge for tokenized stock markets.
Neutral
The article is neutral for the broader cryptocurrency market. It describes structural obstacles facing tokenized equities rather than a new product launch, adoption milestone or market-wide change. The IMF finding that tokenized stocks have about 1.5 times the realized volatility of traditional shares is relevant to traders, but it concerns this asset category and does not itself establish a direct effect on major crypto prices.
In the short term, the report may make traders more cautious about tokenized-stock venues and thinly traded tokens, particularly during weekends or outside traditional market hours. Limited market-maker capital, uncertain redemption and price gaps against underlying shares can increase slippage and volatility. The objections from 38 companies may also weigh on expectations for OKXICE’s scope and adoption. Stablecoin settlement does not remove the need to manage redemption, banking access and fiat conversion.
Over the longer term, reliable redemption, transparent ownership rights and stronger liquidity could support confidence and broader use of tokenized securities. If these mechanisms remain difficult or issuers continue to object, growth may be constrained. Past tokenization initiatives have similarly depended on clear links between onchain claims and offchain assets; periods of uncertainty around redemption or settlement can undermine participation. Traders should therefore monitor platform terms, issuer responses, liquidity depth, spreads and any regulatory developments. Overall, the implications are mixed and concentrated in tokenized equities, supporting a neutral assessment rather than a clear bullish or bearish signal for crypto markets as a whole.