TREE NEWS reports: Tokenized stocks can trade at prices that diverge from the underlying share price, with a closed-market buy-and-exit example illustrating how spreads and trade size affect execution. Minting and redemption of the tokens follow a separate clock from regular equity market hours, meaning token holders face execution risk when the underlying market is shut.
Tokenized Stocks Can Trade Away From Share Price, Example Shows
The example matters less as a curiosity than as a structural warning: tokenized equities inherit two clocks—the token's mint/redeem schedule and the underlying market's hours—and the gap between them is where execution risk lives. Anyone holding these instruments outside regular equity hours is exposed to spreads and size-dependent slippage that the share price alone doesn't capture. The open question is whether venues converge on tighter redemption mechanics or simply normalize off-hours divergence as a cost of tokenization.
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