Crypto exchange KuCoin has rolled out perpetual futures contracts linked with Tesla and Strategy stocks, enabling traders to speculate on price changes without needing to buy the actual stocks first.
The contracts, named TSLAUSDT and MSTRUSDT, which are based on USDt, settling price differences between opening and closing levels, and gamely reflect the tracker price movements around the clock, thereby opening up trading at any time-day or night.
KuCoin’s New Stock Perpetual Contracts
It comes with Several Features Starting at Only 1 USDT for Entry, Along with an Institutional-Class Pricing Frame, and a Smoothing Mechanism Based on EMA for Transition to Help Reduce the Impact of Market Volatility. The contracts also do not have a fixed maturity date, which makes it possible for traders to continue with their trading activities indefinitely.
Also Read: Dubai Regulator Issues Warning Against KuCoin Over Alleged Unlicensed Crypto Services
Growing Trend
This launch is a part of a bigger pattern as tokenized equities are forecasted to reach a market value of $1.03 billion by 2025.
Fintech companies, crypto exchanges, and even traditional brokerages are the main contributors to the growth of this industry, with KuCoin becoming the third big-name crypto exchange after Kraken and Bybit to offer tokenized stocks.
Also Read: KuCoin Enhances Global Expansion Efforts With MiCA Licensing in Austria
Opportunities and Challenges
Tokenized equities present traders with new opportunities, but at the same time present the problem of regulatory oversight.
BC Wong, CEO of KuCoin, remarked, “The global capital markets are progressing towards a new era characterized by liquidity, real-time risk management, and effortlessly obtaining a wide range of products.”
Portfolio management is undergoing a change with the interconnection of global markets such that the risk management is performed continuously through the day and across different asset classes and time zones.
Also Read: Dubai Regulator Issues Warning Against KuCoin Over Alleged Unlicensed Crypto Services
