Tokenized stocks can trade while share markets are closed
Summary
Tokenized stocks offer the ability to trade outside of regular market hours, allowing transactions even when share markets are closed, but sellers do not receive the last share price as an automatic exit. Instead, they obtain bids that could result in larger orders executing at lower prices due to the lack of liquidity. Additionally, while tokens can trade on secondary markets, the minting or redemption processes from issuers may be paused, restricting token holders from converting their tokens back into the underlying shares.
Analysis
Liquidity: A seller receives available bids rather than an automatic exit at the last share-market price, and larger orders may execute at progressively worse prices. Redemption: Issuer minting or redemption can be paused while secondary-market token trading continues, so token holders may temporarily lack a direct conversion route to the underlying shares. Market structure: Tokenized stocks may continue trading outside regular exchange hours even when the reference share price is unchanged, creating potential divergences between token prices and the underlying stock.
Categories
cryptorwa
Related sources
- https://thedefiant.io/newsletter/converge/okx-and-ice-file-to-trade-63-stocks-onchain
- https://thedefiant.io/newsletter/converge/nine-companies-object-to-okx-ice-stock-tokens
- https://range.org/blog/tokenized-stocks-compliance-is-moving-from-issuance-to-operations
- https://x.com/DefiantNews/status/2113383039199740403
- https://podcasts.apple.com/my/podcast/the-defiant/id1512654905
- https://thedefiant.io/tag/tokenization
- https://podcasts.apple.com/gb/podcast/podcast/id1512654905/episodes
- https://x.com/DefiantNews/status/2109659171863908747/video/1
- https://thedefiant.io/newsletter/converge/dtcc-goes-live-with-tokenized-stocks-and-treasuries
- https://x.com/DefiantNews/status/2110361229500022931