Latest Crypto Market Update/Tokenized Assets Remain Marginal Compared to Stock Market

The tokenized asset market is growing rapidly, but it remains in its early stages compared with the broader financial system.

In its latest global financial stability report, the International Monetary Fund examined the five tokenized American stocks with the largest volume of transactions, including Tesla, Nvidia and Alphabet, and the results of this study showed that the volatility of these stocks is about 1.5 times that of traditional stocks and their market liquidity is much lower.

According to Ambassador Arjan, this report has also examined the benefits of tokenized shares in terms of investor access. More than half of the transactions of these stocks were done outside the normal hours of the American market, and about 80% of the total transactions were less than one share. More than 85% of price changes in overnight trading within five minutes after the start of the US market were reflected in traditional stock prices.

The International Monetary Fund announced: These results show that investors are actively using the possibility of trading around the clock and partial investment.

The global lender estimated that the market value of tokenized real assets reached about $65 billion as of July 31. Of this amount, tokenized stocks accounted for only about $2.3 billion, which pales in comparison to the global stock market value of about $160 trillion last year.

Tokenization can automate processes such as dividend payments and collateral transfers, reducing the cost and time of transaction processing, the IMF said. However, the lack of compatibility between issuers, investors, trading platforms and settlement systems is among the limitations of this market. The institution also warned that the combination of round-the-clock trading, automatic requests for guarantee funds and forced sales of assets could lead to a rapid expansion of market tensions.

According to the BloomingBeat report, this global body stated: The tokenized stock market is not yet large enough to pose a widespread risk to the financial system, however, this body emphasized the need to develop legal standards for asset ownership, create protective mechanisms to maintain liquidity, ensure interoperability between platforms, and determine settlement arrangements before the widespread expansion of this market.

Cryptocurrency price update on Monday

This category contains the price changes of the 10 largest digital currencies in terms of market capitalization.