OKX launches stock contracts backed by cryptocurrency

Derivatives allow investors to gain exposure to major company stocks using Bitcoin and Ethereum as collateral.

Cryptocurrency exchange OKX has announced the launch of 24/7 trading for perpetual contracts on stocks and indices, with the option to use cryptocurrencies as collateral. All contracts are denominated in the stablecoin USDT.

The launch includes contracts on “Magnificent Seven” stocks, including Nvidia, Tesla, Apple, and other tech giants. It will also feature stocks of crypto companies such as Strategy, Coinbase, Robinhood, and Circle, as well as tech firms like Palantir, Intel, Micron, SanDisk, and the S&P 500 index.

Unlike tokenized stocks, which represent real securities, stock perpetual swaps are derivatives that track price movements but do not grant ownership rights. According to the press release, trading these instruments on OKX will be available to users in CIS countries, Asia, Latin America, and Turkey.

Leverage of up to 5x is available, and traders can use Bitcoin, Ethereum, and USDT as collateral. OKX also stated that staked assets can be used as collateral while maintaining yield.

The launch follows news that Intercontinental Exchange — the parent company of the New York Stock Exchange (NYSE) — invested in OKX, valuing the exchange at $25 billion. It is expected that, as part of this development, tokenized stocks and NYSE-linked derivatives will be introduced on OKX in the second half of the year.

Perpetual contracts allow traders to open leveraged positions without directly purchasing stocks and without expiration dates. Due to high liquidity, no expiry, and leverage capabilities, these instruments have become the most popular derivatives in the crypto market.

In February, total spot trading volume across the 14 largest platforms fell by 11.5%, while futures trading volume increased by 0.7%.

See also: "Binance delists multiple altcoin pairs from its margin platform: details"

#OKX #Shares #USDT

Share: