From Crypto to Nvidia: Can Bitget RWA Index Contracts Activate Trillion-Level New U.S. Stock Variables?

By OneShotBug

RWA continues to surprise us.

U.S. stocks are a passionate market, and there are always amazing unicorns and entrepreneurial myths, such as Nvidia, which has experienced a skyrocketing market value to the top, which makes many Chinese investors eager to try. However, it is trapped by obstacles such as high transaction fees, cumbersome account opening processes and foreign exchange controls, which makes it difficult to directly participate in US stock investment.

As one of the landing applications of the RWA concept, stock tokenization provides a new investment path. RWA contracts issued by platforms such as xStocks and Ondo allow investors to indirectly invest in the US stock market in the form of tokenized assets, avoiding the cumbersome process and high fees of traditional stock markets.

This article will focus on Bitget's newly launched "RWA Index Perpetual Contract", which is the first to launch popular US stocks such as Nvidia (NVDA), Tesla (TSLA), and Circle (CRCL), and has made further innovations based on RWA contracts: on the one hand, it weights the price of products from multiple issuers, and on the other hand, it allows flexible investment using high-leverage trading. Overall, this seems to be a very suitable tokenized U.S. stock investment product for Chinese-speaking people.

Next, I will briefly introduce RWA index perpetual contract products and analyze their product advantages, risk management mechanisms, and market opportunities.

Why is the cryptocurrency circle concerned about stock tokenization?

As the brightest star in the continuous deep integration of the cryptocurrency market and the traditional financial market, stock tokenization has built a bridge between the crypto market and the traditional stock market.

With the rapid development of blockchain technology, almost all tokenized assets have begun to gradually enter the blockchain field. From the initial stablecoins to traditional financial assets such as real estate, bonds, and funds, to the current popularity of tokenized stocks, each innovation strives to eliminate barriers and barriers in traditional finance through blockchain, breaking down time, geography, and other limitations.

At its core, stock tokenization transforms 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 solves long-standing pain points such as difficulty in opening accounts, remittances, and mismatched trading times.

Although stock tokenization is not a new concept, platforms such as FTX and Binance tried to launch related products as early as 2020, but their attempts ultimately failed to continue due to regulatory pressure. However, with the recovery of market demand and the improvement of technical conditions, stock tokenization has once again become the focus in 2024 and has become one of the hot spots for investors. Nowadays, the continuous development of RWA products has made it more and more common for investors to participate in US stock investment through tokenization.

What is RWA Index Perpetual Contract

RWA Index Perpetual Contract is Bitget's first innovative financial product, according to the official website, the biggest innovation of RWA Index Perpetual Contract is that it adopts a multi-issuer weighted pricing mechanism. Each index is formed by synthesizing token prices from multiple platforms such as xStocks and Ondo, bringing together multiple stock tokenized assets into a single weighted index. With weighted pricing, Bitget is able to pool token prices from multiple issuers.

This pricing mechanism makes RWA index contracts more flexible and stable, and provides greater market transparency. Investors can clearly understand the weight of each token in the contract and get a comprehensive market pricing through the weighted index in the contract.

Actual trading can be completed on the Bitget official website and app, and you can directly search for the name of the relevant product in the contract.

Opportunities for Chinese-speaking investors: zero-threshold participation in the U.S. stock market

For investors, the US stock market is a market full of opportunities, especially the world's leading companies such as Tesla and Nvidia, which are growing rapidly. But for many Chinese-speaking investors, direct investment in U.S. stocks has always been full of obstacles. First, investors need to open an account through a traditional brokerage platform, which often involves cumbersome procedures, such as submitting a large number of identity verification materials, cumbersome tax declarations, etc. In addition, many investors also need to face high handling fees, including account management fees, transaction commissions, and remittance fees, which will undoubtedly significantly reduce investment returns.

In addition to these traditional obstacles, foreign exchange controls are also a huge challenge for Chinese-speaking investors. Even if investors are willing to pay fees, many times they cannot directly access the opportunities in the U.S. stock market due to market access restrictions.

Because of this, direct investment in US stocks is not only a cumbersome process for many Chinese-speaking investors, but also requires overcoming many obstacles, and the high-threshold investment environment can only discourage them.

Bitget's RWA index perpetual contracts provide investors with a zero-barrier investment method, allowing them to easily participate in trading US tokenized assets simply through the platform. Investors no longer need the support of traditional stock accounts or even the need to exchange funds through the traditional banking system. This once again shows that Bitget is very good at using innovative products that allow investors to reflect innovative products in various crypto fields without complicated processes.

Risks and Opportunities of High Leverage Trading

In addition to breaking through the barriers of traditional investment, RWA index perpetual contracts also provide investors with a high-leverage trading mechanism. With a maximum leverage of 10x, investors can earn higher returns on trading U.S. stock tokenized assets with a smaller capital investment.

Of course, in high-leverage trading, small market fluctuations can lead to large financial losses. Therefore, investors must be especially careful when choosing leveraged trading, pay close attention to market changes, adjust their strategies in a timely manner, and avoid excessive losses due to adverse fluctuations.

To help investors better control their risks in high-leverage trading, Bitget has implemented a number of risk management measures. These measures are designed to minimize potential losses for investors and protect the safety of investors' funds when the market fluctuates.

• Trading Hours: Trading is available 24 hours from Monday to Friday, from Monday 0:00 to 0:00 every Saturday in the US Eastern Time Zone (UTC-4 time zone). In addition, RWA contracts are suspended at the same time during the US public holiday stock market holiday.

• Closed market freeze: Price freeze on weekends and during stock market closures to avoid liquidation, support order cancellation but suspend new order submission, and funding fee settlement will be restarted as trading resumes.

• Leverage Limit: The initial leverage limit is set at 10x, and isolated margin mode is supported.

• Risk Funds: Bitget equips each RWA Index Perpetual Contract with a risk fund to address potential risks posed by extreme market volatility. The venture fund has an initial amount of 50,000 USDT and is used as compensation funds during severe market fluctuations. This fund provides an additional layer of protection for investors, mitigating the risks associated with high-leverage trading.

• Position limits: Bitget also sets a position limit for a single account to prevent a single investor's position from becoming too large, which can affect the liquidity and stability of the market. By limiting the maximum position of a single investor, Bitget can better control market risks and avoid market instability caused by overtrading by one investor.

These measures allow investors to have stronger protection when using high leverage. Regardless of market volatility, investors can feel a level of safety net, reducing potential risks in trading.

Conclusion

From the on-chain listings of real shares promoted by Kraken, Bybit, and Robinhood, to the compliant token issuance of xStocks, Dinari, and Ondo, to Tron Inc.'s attempt to "reverse the entry of on-chain assets", this round of asset structure reconstruction is not only about innovation in smart contracts or product forms, but also about whether a complete on-chain financial ecosystem can be built.

is in this context that RWA index perpetual contracts emerge, which not only open the door to the US stock market for Chinese-speaking investors, but also build a bridge between the crypto market and the traditional stock market. With the integration of the two, it is still difficult to predict whether it can truly change the way investors invest and become the mainstream in the future.

I don't know the answer, but I believe that in the face of a changing market, we should try more cutting-edge and innovative products. After all, investment is a game, and every decision is a race between the future and opportunities.