Wall Street is racing toward tokenized stocks and around-the-clock trading, yet many institutional investors remain cautious about immediate settlement. Exchanges are competing to offer blockchain-based equities and around-the-clock trading. However, institutions are concerned about liquidity and funding risks. Tokenization would place traditional assets on a blockchain network, with the potential to modernize decades of market infrastructure and move and settle securities instantly.
In theory, that could enable 24/7 trading, but the path to immediate settlement would require full funding at the time of each trade. Retail investors could be quicker to adopt tokenized markets, including international buyers seeking access when U.S. markets are closed. As liquidity shifts to tokenized venues, institutions may follow, though fragmentation remains a concern if multiple tokens represent the same security.
Retail already accounts for roughly 20% of U.S. stock trading, with some stocks seeing retail activity exceed half of daily volume in certain cases. The momentum shows no sign of abating, with exchanges exploring extended hours and some proposing near-24/7 markets within years. Tokenized equities could play a broader role in market infrastructure as retail leads adoption and institutions follow. However, for now, this technology is likely to develop faster among retail traders than among the institutions that dominate today’s markets.
Exchanges are already looking at extending trading hours, and some are proposing near-24/7 markets within the next few years. Tokenization could ultimately be part of these changes — modernizing infrastructure in the background while gradually reshaping how investors access stocks. However, for now, this technology is likely to develop faster among retail traders than among the institutions dominating today’s markets.
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