The RWA Index Perpetual Contract has emerged against this backdrop, not only opening the door to the U.S. stock market for Chinese-speaking investors but also bridging the gap between the crypto market and traditional stock markets.
Author: OneShotBug
RWA continues to bring us more surprises.
The U.S. stock market is a vibrant arena, always showcasing astonishing unicorns and entrepreneurial legends, such as Nvidia, which has seen its market value soar, enticing many Chinese-speaking investors. However, obstacles such as high trading fees, cumbersome account opening processes, and foreign exchange controls make direct participation in U.S. stock investments challenging.
As one of the practical applications of the RWA concept, stock tokenization offers a new investment avenue. Platforms like xStocks and Ondo issue RWA contracts that allow investors to indirectly invest in the U.S. stock market through tokenized assets, avoiding the cumbersome processes and high costs of traditional stock markets.
This article will focus on Bitget's newly launched "RWA Index Perpetual Contract," which initially includes popular U.S. stock targets such as Nvidia (NVDA), Tesla (TSLA), and Circle (CRCL), and has made further innovations based on RWA contracts: on one hand, it calculates the prices of multiple issuers' products with weighted averages, and on the other hand, it allows for flexible investment through high-leverage trading. Overall, this seems to be a highly suitable tokenized U.S. stock investment product for Chinese-speaking individuals.
Next, I will quickly introduce the RWA Index Perpetual Contract product and analyze its advantages, risk management mechanisms, and market opportunities.
Why is the crypto community interested in stock tokenization?
As a shining star in the ongoing deep integration of the cryptocurrency market and traditional financial markets, stock tokenization builds a bridge between the crypto market and traditional stock markets.
With the rapid development of blockchain technology, almost all tokenizable assets have begun to gradually enter the blockchain realm. From the initial stablecoins to traditional financial assets like real estate, bonds, and funds, and now to the hot topic of stock tokenization, each innovation aims to eliminate barriers and obstacles in traditional finance through blockchain, breaking limitations of time and geography.
The core of stock tokenization lies in converting traditional stock assets into digital tokens on the blockchain, enabling 24-hour global trading, fractional share purchases, and more efficient cross-border transactions. This model is particularly attractive to global retail investors, especially those from emerging markets, as it addresses long-standing pain points such as difficulties in account opening, remittance challenges, and mismatched trading hours.
Although stock tokenization is not a new concept—platforms like FTX and Binance attempted to launch related products as early as 2020—regulatory pressures ultimately hindered their efforts. However, with the resurgence of market demand and improved technological conditions, stock tokenization has once again become a focal point in 2024 and is one of the hot topics among investors. Nowadays, the continuous development of RWA products has broadened the opportunities for investors to participate in U.S. stock investments through tokenization.
What is the RWA Index Perpetual Contract?
The RWA Index Perpetual Contract is an innovative financial product launched by Bitget. According to the official website, the most significant innovation of the RWA Index Perpetual Contract lies in its use of a multi-issuer weighted pricing mechanism. Each index is formed by aggregating the token prices from multiple platforms (such as xStocks and Ondo), combining multiple stock tokenized assets into a weighted index. Through weighted pricing, Bitget can consolidate token prices from various issuers.
This pricing mechanism makes the RWA index contract more flexible and stable, providing greater market transparency. Investors can clearly understand the weight of each token in the contract and obtain a comprehensive market price through the weighted index in the contract.
Actual trading can be completed on multiple platforms, including the Bitget website and app, by simply searching for the names of the relevant products in the contract. Currently, the products available are NVDA, TSLA, and CRCL, supporting USDT trading pairs.
Opportunities for Chinese-speaking investors: Zero-threshold participation in the U.S. stock market
For investors, the U.S. stock market is full of opportunities, especially with rapidly growing global leaders like Tesla and Nvidia. However, for many Chinese-speaking investors, direct investment in U.S. stocks has always been fraught with various obstacles. First, investors need to open an account through traditional brokerage platforms, a process that often involves cumbersome procedures, such as submitting a large number of identity verification materials and complicated tax declarations. Additionally, many investors face high fees, including account management fees, trading commissions, and remittance fees, which significantly compress investment returns.
Beyond these traditional barriers, foreign exchange controls pose a significant challenge for Chinese-speaking investors. Even if investors are willing to pay fees, they often cannot access opportunities in the U.S. stock market due to market entry restrictions.
As a result, direct investment in U.S. stocks is not only a cumbersome process for many Chinese-speaking investors but also requires overcoming numerous obstacles, with a high-threshold investment environment that leaves them discouraged.
Bitget's RWA Index Perpetual Contract provides investors with a zero-threshold investment method, allowing easy participation in trading tokenized U.S. stock assets through the platform. Investors no longer need the support of traditional stock accounts or even need to go through traditional banking systems for currency exchange. This once again demonstrates Bitget's expertise in enabling investors to engage with various innovative products in the crypto space without complex processes.
High-leverage trading risks and opportunities
In addition to breaking through traditional investment barriers, the RWA Index Perpetual Contract also offers investors a high-leverage trading mechanism. With a maximum leverage of 10 times, investors can achieve higher returns in trading tokenized U.S. stock assets with a smaller capital investment.
Of course, in high-leverage trading, even slight market fluctuations can lead to significant financial losses. Therefore, investors must exercise caution when choosing leveraged trading, closely monitor market changes, and adjust strategies in a timely manner to avoid excessive losses due to adverse fluctuations.
To help investors better manage risks in high-leverage trading, Bitget has implemented several risk management measures. These measures are designed to minimize potential losses for investors during market volatility and protect their capital.
Trading hours: Trading is available 24 hours from Monday to Friday, specifically from 0:00 on Mondays to 0:00 on Saturdays in the U.S. Eastern Time Zone (UTC-4). Additionally, RWA contracts will also be suspended during U.S. public holidays when the stock market is closed.
Market freeze: Prices are frozen during weekends and stock market closures to avoid liquidation, supporting order cancellations but pausing new order submissions, with funding fees settled when trading resumes.
Leverage limits: The initial leverage cap is set at 10 times, supporting a cross-margin model.
Risk fund: Bitget has equipped each RWA Index Perpetual Contract with a risk fund to address potential risks arising from extreme market volatility. The initial amount of the risk fund is 50,000 USDT, which is used as compensation during significant market fluctuations. This fund provides an additional layer of protection for investors, mitigating risks associated with high-leverage trading.
Position limits: Bitget has also set position limits for individual accounts to prevent any single investor from holding excessively large positions that could impact market liquidity and stability. By limiting the maximum position for individual investors, Bitget can better control market risks and avoid instability caused by excessive trading by any one investor.
These measures provide stronger safeguards for investors using high leverage. Regardless of market fluctuations, investors can feel a certain level of safety net, reducing potential risks in trading.
Conclusion
From the on-chain real stocks promoted by Kraken, Bybit, and Robinhood, to the compliant token issuance by xStocks, Dinari, and Ondo, and the "on-chain asset reverse market entry" attempts by Tron Inc., this round of asset structure reconstruction is not just about innovations in smart contracts or product forms, but whether a complete on-chain financial ecosystem can be built.
The RWA Index Perpetual Contract has emerged in this context, not only opening the door to the U.S. stock market for Chinese-speaking investors but also bridging the gap between the crypto market and traditional stock markets. As the two continue to merge, whether this can truly change the way investors invest and become the mainstream in the future remains uncertain.
I do not know the answer, but I believe that in the face of a constantly changing market, we should try more cutting-edge and innovative products. After all, investing is a game of chance, and every decision is a race between the future and opportunity.
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
