Trading Stocks Like Crypto: A New Way to Invest

BitMEX is shaking things up by introducing Equity Perps, a fresh type of contract that lets people trade big US stocks and indexes around the clock. 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 get exposure to traditional stocks without selling them. This isn't just a small step; it's a big move towards blending the crypto and stock worlds. Perpetual swaps, which are already popular in crypto, offer high leverage and don't expire. Now, BitMEX is bringing that same idea to equities, which usually only trade during specific hours. The demand for trading stocks on the blockchain is growing. Bitget, another platform, saw over $1 billion in trades for tokenized stocks last December. A lot of that interest came from products linked to gold and silver, which were doing well in traditional markets. Bitget's CEO, Gracy Chen, pointed out that the surge in trading coincided with a boost in US equities, especially in tech and AI sectors. Other big players like Kraken and Coinbase are also jumping into tokenized equities. Kraken's xStocks have hit $10 billion in trading volume, and Coinbase is integrating stocks and other assets. This shows that traditional assets might soon trade with the same liquidity and accessibility as crypto.Younger investors are particularly interested in this. Gallup data shows that Gen Z adults in the US are less likely to own individual stocks compared to older generations. Instead, they're drawn to speculative, tech, and crypto investments. BitMEX is targeting this group, offering them the flexibility to trade with leverage at any time. BitMEX's CEO, Stephan Lutz, explained that younger investors want control over their investments and the ability to trade with leverage when it's convenient. Equity Perps let them 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. However, there are regulatory challenges. Tokenized stocks and equity-linked products are in a gray area in many places. 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 towards tokenized equities is clear, and it's likely to keep growing.