Trading Stocks Like Crypto: A New Way to Invest
BitMEX is making waves with the introduction of Equity Perps, a new type of contract that allows traders to trade major US stocks and indexes 24/7. Think Apple, Tesla, Nvidia, and even the S&P 500 and Nasdaq. These contracts are collateralized with crypto, meaning you can use your digital assets to gain exposure to traditional stocks without selling them.
A Major Step Toward Merging Crypto and Stock Markets
Perpetual swaps, already popular in the crypto world, offer high leverage and no expiration. Now, BitMEX is bringing this concept to equities, which traditionally trade only during specific hours. This move is part of a broader trend where crypto and stock markets are converging.
Growing Demand for Tokenized Stocks
The demand for trading stocks on the blockchain is on the rise. Bitget, another platform, saw over $1 billion in trades for tokenized stocks last December. Much of this interest came from products linked to gold and silver, which performed well in traditional markets. Gracy Chen, CEO of Bitget, noted that the surge in trading coincided with a boost in US equities, particularly in tech and AI sectors.
Other major players like Kraken and Coinbase are also entering the tokenized equities space. Kraken's xStocks have hit $10 billion in trading volume, and Coinbase is integrating stocks and other assets. This suggests that traditional assets may soon trade with the same liquidity and accessibility as crypto.
Younger Investors Drive the Trend
Younger investors are particularly drawn to this trend. Gallup data shows that Gen Z adults in the US are less likely to own individual stocks compared to older generations. Instead, they prefer speculative, tech, and crypto investments. BitMEX is targeting this demographic, offering them the flexibility to trade with leverage at any time.
Stephan Lutz, CEO of BitMEX, explained that younger investors want control over their investments and the ability to trade with leverage when it's convenient. Equity Perps allow them to use their crypto as collateral, so they don't have to sell their digital assets to invest in stocks. This product is aimed at both crypto derivatives users and retail traders who don't have easy access to US equities or live in different time zones.
Regulatory Challenges Ahead
However, regulatory challenges remain. Tokenized stocks and equity-linked products exist in a gray area in many jurisdictions. Regulators in the US and Europe have raised concerns about investor protection, ownership rights, and how existing rules apply. Lutz emphasized that BitMEX is committed to following all applicable laws and regulations. He also noted that cash-settled Equity Perps avoid some of the complexities of spot tokenized shares.
Chen from Bitget acknowledged that regulatory models vary by jurisdiction and sees this as part of the industry's natural evolution. Despite the challenges, the trend toward tokenized equities is clear and likely to keep growing.
