Cryptocurrency exchange KuCoin has launched new perpetual derivatives linked to major stocks, including Tesla (TSLA) and MicroStrategy (MSTR). These USDt-settled contracts allow traders to speculate on stock price movements around the clock.
The contracts, such as TSLAUSDT and MSTRUSDT, track the underlying equities but do not confer ownership. They have no expiration date, offering continuous trading with a low entry threshold, starting at just 1 USDt.
KuCoin states the pricing framework is designed to bridge the gap between traditional stock market hours and the continuous crypto derivative trading environment. Access may be restricted in certain jurisdictions due to local regulations.
The market for tokenized equities has seen significant growth, reaching approximately $1.03 billion. This expansion is driven by a mix of fintech companies, crypto exchanges, and traditional financial institutions.
Recent developments include Robinhood's expanded tokenization initiative and new offerings from exchanges like Kraken, which launched tokenized equity perpetual futures for eligible non-US clients. Traditional exchanges like the New York Stock Exchange and Nasdaq are also exploring platforms for trading tokenized stocks, aiming for continuous trading and instant settlement.
