Tokenized stocks need more than 24/7 trading to solve liquidity problem, Gravity Team CEO says

Gravity Team's Mārtiņš Beņķītis says reliable redemption and market maker capital are critical to deeper tokenized equity markets as more companies reject OKXICE listings. Tokenized stocks need deeper liquidity and reliable redemption mechanisms to support large trades, as round-the-clock trading alone cannot overcome the risks market makers face when traditional stock exchanges are closed, according to Gravity Team CEO Mārtiņš Beņķītis. In a written interview with Crypto Briefing, Beņķītis said liquidity providers must commit capital to absorb trades during weekends and overnight sessions, when the underlying shares cannot always be bought or sold to hedge their exposure. A large order in a tokenized stock can therefore move prices significantly if there is insufficient capital on the opposite side of the trade. “Prices can reflect new information during the weekend. Making those prices usable for larger transactions requires funded capacity to take the other side,” Beņķītis said. The liquidity challenge was also highlighted in an October report from the International Monetary Fund, which found that tokenized equities remain significantly less liquid than traditional stocks and ex...