Bitfinex has argued for 24/7 stock markets, citing IMF research that found 87–99% of overnight tokenized equity moves appeared in conventional securities within five minutes of the opening bell.
Summary
- IMF research found 87–99% of overnight tokenized equity moves appeared in conventional securities shortly after opening.
- Nasdaq targets Dec. 6 for 23-hour weekday trading, retaining daily pauses and weekend closures.
- TD Cowen expects limited U.S. demand as tokenized stocks compete with efficient conventional markets.
- Morgan Stanley pushed its expected tokenized equity rollout to Q1 2027 as preparations continue.
Bitfinex said in an Oct. 23 article that tokenized equities already offer continuous trading while Wall Street prepares for nearly 23-hour weekday sessions. The exchange presented the research as evidence that blockchain-based markets can provide price signals when conventional venues are closed, while acknowledging uncertainty over whether token trading drives those prices.
Nasdaq’s published timetable targets Dec. 6 for its new overnight session, with implementation dependent on market data infrastructure readiness and applicable SEC rule changes. Its proposed schedule retains a daily maintenance break and a weekend closure.
Tokenized stocks show a relationship with opening prices
The IMF’s October Global Financial Stability Report compared overnight token returns with the underlying securities’ returns during the first five minutes of the regular U.S. session. Its estimated pass-through ranged from 87% to 99%.
The Fund described the result as evidence that both markets respond to similar information. The calculation measures the relationship between returns; it does not establish that tokenized venues caused the conventional market’s opening move.
Researchers examined five liquid exposures covering the S&P 500, Nasdaq, Tesla, Google and Nvidia, using Ondo and xStocks tokens across 11 venues. The sample represented $345 million, or approximately 15% of the tokenized equity market measured at July 31.
The report found more than half of trading occurred outside regular U.S. hours. It cautioned that its early findings may not describe how the market operates after further adoption.
Bitfinex’s case for continuous trading includes the ability to react to news across time zones. Its article points to investors in Hong Kong and Singapore, where Wall Street’s regular session falls during the evening and overnight.
Jesse Knutson, head of operations at Bitfinex Securities, argued that trading restrictions can push activity into reopening periods.
“Preventing trading does not necessarily prevent risk. It can concentrate activity into the moment when markets reopen.”
Bitfinex acknowledged that tokenized equities were less liquid and more volatile than conventional securities in the IMF analysis. Its article described the Fund’s concerns about automated liquidations and proposals to adapt circuit breakers and other safeguards for continuous markets.
Nasdaq’s planned schedule keeps daily and weekend breaks
Nasdaq’s information hub says the planned overnight session will run from 9 p.m. to 4 a.m. Eastern Time. Combined with existing sessions, trading would operate from Sunday evening through Friday evening, pausing daily between 8 p.m. and 9 p.m.
Nasdaq says its regular 9:30 a.m. to 4 p.m. session will retain the opening and closing crosses. Trades executed between 9 p.m. and midnight would carry the following calendar day’s trade date, with settlement terms based on that date.
The exchange’s FAQ says the schedule applies to the Nasdaq Stock Market. Nasdaq Texas, PSX and Nasdaq options exchanges would retain their existing hours.
Its holiday arrangements would permit trading to begin at 9 p.m. on a U.S. exchange holiday falling between Monday and Thursday, according to the FAQ. The page still describes implementation as conditional, despite announcing the December target.
Trading growth accompanies questions over U.S. demand
Tokenized equity activity has grown beyond the IMF study’s reference period. DWF Labs estimated market value at $3.8 billion and weekly decentralized exchange trading at $2.54 billion in the week of Oct. 5, as previously reported by crypto.news.
The firm’s figures put weekly DEX trading at 55 times its January level, although the October total remained below the $7.26 billion recorded in the week of Aug. 31. DWF Labs measured $313 million in tokenized equities deployed across DeFi by Oct. 15.
The firm put deployed DeFi capital at roughly 8% of tokenized equity market value, compared with approximately 2% in January.
DWF Labs distinguished exchange trading from transfers between blockchain addresses, which can include movements involving lending protocols. Its report measured weekly transfers at $17.5 billion, a separate figure from spot DEX volume.
In a September assessment, TD Cowen expected limited U.S. demand for tokenized stocks because domestic investors already had efficient access to conventional shares. Analyst Reid Noch said tokenized platforms needed benefits that outweighed their operational complexity and restricted liquidity.
TD Cowen warned that a venue remaining open does not guarantee favorable execution. Its analysis said thin asset pools could produce weaker prices when fewer traders and liquidity providers participate outside the main U.S. session.
Morgan Stanley’s preparations run into 2027
Institutional preparations remain unfinished at some firms. Morgan Stanley moved its expected tokenized equity timetable to the first quarter of 2027 from the second half of 2026, according to Oct. 12 coverage.
Amy Oldenburg, the bank’s head of digital asset strategy, said suitable products and institutional demand needed more time to develop. The planned support concerns its existing Trajectory Cross alternative trading system, which handles conventional equities, exchange-traded funds and American Depositary Receipts.
The bank had not announced a final launch date or eligible stock list in that update. Its preparations included proprietary wallet infrastructure and blockchain application work through its Digital Asset Lab.
