Global exchange leader Cboe recently announced plans to introduce 24-hour stock trading services, aiming to meet the growing needs of international investors and reflecting a potential competitive alignment with crypto markets. As tokenized asset (RWA) technology rapidly advances, the integration of traditional finance and crypto finance is set to deepen and innovate.
Cboe to Launch 24x5 U.S. Equities Trading
Cboe Global Markets, a leading derivatives and securities exchange, revealed its intention to offer round-the-clock trading from Monday to Friday on its Cboe EDGX equities exchange. This initiative is designed to provide investors with greater flexibility and expanded market access.
The primary goal is to serve investors in Asian markets who seek broader access to U.S. stock trading hours outside traditional sessions.
Oliver Sung, Head of North American Equities at Cboe, stated:
We have heard strong demand from investors in Hong Kong, Japan, Korea, Singapore, and Australia for extended U.S. equity trading hours. In response, we are launching a 24x5 trading model.
He added, “As a preferred exchange known for transparency and robust liquidity, we are well-positioned to support 24-hour equity trading.”
Growing Demand for Round-the-Clock Trading in Traditional Finance
Cboe currently operates 27 markets across the U.S., Asia-Pacific, and Europe, covering five asset classes. Some of these already offer extended trading hours. For example, the EDGX U.S. equities exchange allows order entry starting at 2:30 a.m. ET, with trading occurring from 4 a.m. to 8 p.m. ET.
Between 2022 and 2024, trading volume during Cboe’s early session increased by 135%, highlighting rising investor interest in non-standard trading hours.
Cboe already supports nearly 24-hour trading in several derivative markets, including:
- S&P 500 Index (SPX) options
- Cboe Volatility Index (VIX) options and futures
- Global foreign exchange (FX) markets
As demand for continuous trading grows worldwide, Cboe aims to extend this model to U.S. equities, enabling global investors to respond to market developments in real time and manage risk more effectively.
The Promising Future of Tokenized Equities
The convergence of blockchain and traditional finance is accelerating the development of tokenized financial assets. By converting assets like treasury bonds, loans, or securities into tokens, market participants can achieve greater efficiency and lower costs.
Data from RWA.xyz indicates that the global RWA market is valued at $17.1 billion. The private credit segment leads with $11.8 billion, followed by tokenized U.S. treasuries at $3.43 billion. Tokenized equities, however, represent a much smaller portion, at approximately $160 million.
Despite this, investment management firm VanEck has predicted that 2025 will be a breakout year for tokenized securities, estimating the market could grow to $50 billion—representing massive expansion potential.
Several weeks ago, BlackRock CEO Larry Fink voiced support for asset tokenization during the World Economic Forum. He urged the U.S. Securities and Exchange Commission (SEC) to accelerate the tokenization of traditional financial assets to improve market transparency and liquidity.
RWA Technology Reshaping Financial Markets
The rapid growth of tokenization technology, combined with Cboe’s move toward 24-hour trading, signals an industry-wide shift toward digitization.
As Bitwise previously noted, tokenization can lower barriers to entry in capital markets, allowing smaller enterprises to participate more freely. This innovation has the potential to fundamentally reshape how traditional financial markets operate.
Looking ahead, the fusion of conventional exchanges and blockchain-based finance is expected to broaden, offering global investors a more flexible and efficient trading environment.
👉 Explore advanced trading strategies
Frequently Asked Questions
What is 24x5 trading?
24x5 trading refers to market operations that run 24 hours a day, five days a week. This allows investors from different time zones to trade outside standard market hours, increasing accessibility and flexibility.
How does tokenization improve financial markets?
Tokenization converts physical or financial assets into digital tokens on a blockchain. This process can reduce transaction costs, increase settlement speed, and enhance liquidity and transparency in traditionally illiquid markets.
Is 24-hour stock trading available to all investors?
While initially aimed at international investors, especially in Asia, 24-hour trading is generally accessible to all participants through supported platforms and brokers that offer extended hours trading.
What are the risks of tokenized assets?
Tokenized assets carry typical market risks, including volatility and liquidity concerns. Additionally, regulatory uncertainty and technological vulnerabilities may pose challenges that investors should consider.
Will other exchanges follow Cboe’s 24-hour model?
Given rising global demand and the success of extended hours in derivatives trading, it is likely that other major exchanges may explore similar around-the-clock services for equities and other assets.
How does asset tokenization relate to cryptocurrency?
Tokenization often uses blockchain technology, which also underpins cryptocurrencies. However, tokenized assets represent ownership in real-world assets like stocks or bonds, unlike cryptocurrencies which are native digital assets.
Disclaimer: Cryptocurrency investments carry significant risk due to high price volatility. Investors may lose their entire capital. Always assess your risk tolerance carefully.