Tokenized Stocks And Tracking Errors: Evidence On Pricing Efficiency

Author First name, Last name, Institution

• Mieszko Mazur, De Vinci Higher Educ
• Efstathios Polyzos, Zayed UniversityFollow

Document Type

Article

Source of Publication

Finance Research Letters

Publication Date

6-6-2026

Abstract

Tokenized stocks emerge as an innovative gateway to the ownership of foreign assets that otherwise would not be accessible to many investors worldwide. In this paper, we investigate whether tokenized stocks are priced efficiently based on the analysis of tracking errors that may arise between tokenized and traditional stocks. We find that tracking errors increase with return volatility, market-wide uncertainty and weaker alignment between token and equity returns. Moreover, mis-tracking is more pronounced for firms with higher valuations, greater market risk exposure, and elevated short-selling activity.

DOI Link

10.1016/j.frl.2026.110201

ISSN

1544-6123

Publisher

Elsevier BV

Volume

106

Disciplines

Business

Keywords

Tokenized stocks, tracking error, crypto markets, Volatility

Recommended Citation

Mazur, Mieszko and Polyzos, Efstathios, "Tokenized Stocks And Tracking Errors: Evidence On Pricing Efficiency" (2026). All Works. 8085.
https://zuscholars.zu.ac.ae/works/8085

Indexed in Scopus

no

Open Access

no