What I am curious about is what happens when the wrapped equities go no bid on a Sunday night due to some geopolitical event similar to what happened to shitcoins last Friday. They can't arb because the market is closed.

So I hold a tokenized equity and it is now trading at 50% below the underlying because of a liquidity event. I get liquidated (if I am on margin) and the underlying price doesn't move until Monday. Monday morning they announce some untold amounts of trillions to combat the geopolitical event and the market rockets up. Underlying is trading higher than it did at close on Friday meanwhile token took a 50% hit and liquidated a ton of people.

Only way tokenization works is if it has a huge amount of liquidity and trading volume or a giant pool of liquidity to back stop it all.