Tokenized U.S. stocks are attracting demand for continuous access and fractional trading, but an International Monetary Fund analysis found that the market remains more volatile and less liquid than traditional equity markets. More than half of trading occurred outside regular U.S. market hours, and about 80% of trades involved less than one share. Tokenized equities were roughly 1.5 times more volatile than the underlying stocks, with decentralized exchanges showing the weakest liquidity and the largest pricing differences. The IMF studied the five most liquid tokenized U.S. equities across 11 trading venues over 365 days and found that traditional shares absorbed 87% to 99% of overnight tokenized price moves when markets reopened. The market was worth about $2.3 billion, with Ondo Finance and Backed Finance's xStocks accounting for more than 70%. Both issue synthetic tokens that provide price exposure without direct ownership of the underlying shares. The IMF said systemic risks remain limited while the market is small, but urged regulators to consider circuit breakers for 24/7 trading and monitor connections with traditional markets. The report also noted an earlier IMF warning that tokenized finance and stablecoins could amplify financial crises. The findings come as NYSE, ICE, OKX, Securitize, Cboe and Coinbase expand tokenization efforts.