BitMEX is expanding its offerings beyond traditional crypto markets by introducing Equity Perpetuals, new perpetual swap contracts that provide 24/7 access to major US stocks and indices using cryptocurrencies as collateral.
This new product is designed to give traders around-the-clock access to stocks such as Apple, Tesla, and Nvidia, allowing them to trade without the usual market hours limitations. According to a press release, this development comes amidst a growing interest in tokenized stocks, with exchanges like Bitget reporting that its cumulative trading volume of tokenized stocks has surpassed $1 billion in December alone.
Increasing Demand for Onchain Equities
The surge in tokenized stock trading correlates with increased demand for gold and silver-linked products as traditional precious metals reach all-time highs. Gracy Chen, CEO of Bitget, stated, “December’s surge went hand in hand with the US equities, where AI narratives and renewed tech enthusiasm created ideal conditions for active trading.”
BitMEX launches Equity Perps. Source: BitMEX
At the same time, other exchanges are also making strides in this area. Kraken’s xStocks tokenized equities transactions crossed $10 billion, while Coinbase has also announced plans to integrate stocks and tokenized assets.
Addressing Retail Traders’ Needs
Recent Gallup data indicates that younger investors, particularly Gen Z, are less likely to own individual stocks compared to older generations, prompting BitMEX to target this demographic. Stephan Lutz noted, “We find that younger investors want to take charge of their own investments, while having the flexibility to trade with leverage during the most convenient times for them.”
Equity Perpetuals empower investors to leverage their crypto holdings without having to sell their assets to invest in equities. Lutz emphasized that this product is meant for both seasoned crypto derivative users and retail traders who may face hurdles accessing US equities due to time zone constraints.
Navigating Regulatory Challenges
While the new contracts are set to launch in a regulatory gray area, BitMEX reassures that it aims to comply with all applicable laws. Lutz framed these perpetual contracts as an alternative to more traditional tokenized shares, avoiding some complexities tied to them. Chen acknowledged the differing regulatory approaches across jurisdictions, reinforcing Bitget’s respect for these variations as the industry matures.
Related: Tokenized stocks rise 220% in July, reminiscent of ‘early DeFi boom’
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