The integration of crypto assets with traditional finance is entering a new phase. Previously, users looking to access the US stock market with cryptocurrencies could only choose tokenized stock products or contract-based derivatives. However, these options had clear limitations in terms of asset selection, liquidity, and holding costs. Now, Gate, through a compliant brokerage partnership model, enables direct trading of real US stocks using stablecoins like USDT.
Why Do Crypto Users Choose Gate for US Stock Allocation?
As crypto investors increasingly seek cross-asset allocation, more users are turning their attention to traditional financial assets such as tech stocks, AI-themed stocks, and ETFs in the US market. Gate Stocks connects stablecoins directly to the US securities market, offering crypto users a more convenient entry point for investment.
First, users can participate in the US stock market without leaving the crypto ecosystem. USDT or USDC in their accounts can be used directly to purchase US-listed stocks and ETFs, providing a seamless experience for allocating assets from crypto to US equities.
Second, Gate Stocks covers more than 10,000 stocks and ETFs, including major tech stocks, growth stocks, value stocks, and various industry-themed funds. Compared to tokenized solutions that only offer limited assets, users have access to a much broader selection, allowing for more diversified portfolio construction.
In terms of trading experience, orders are routed through compliant brokers directly into the US securities market. During trading hours, users benefit from market depth and liquidity support from leading exchanges such as NYSE (New York Stock Exchange) and Nasdaq (National Association of Securities Dealers Automated Quotations), as well as access to National Best Bid and Offer (NBBO) pricing.
Additionally, Gate Stocks operates on a spot trading model, with no funding rates or overnight holding fees. Users can freely choose between short-term trading or long-term holding strategies based on their investment goals, without incurring ongoing holding costs.
For users already holding stablecoins, Gate Stocks offers a new gateway connecting the crypto market with global capital markets, making cross-asset allocation more efficient, convenient, and transparent.
What Are the Fundamental Differences Between Stock Tokenization and US Stock Trading in Terms of Asset Properties?
Understanding the differences between these two models is essential for evaluating their suitability. Stock tokenization falls under the category of RWA (Real World Asset) tokenization. Its value is pegged to a specific US stock, but trading occurs on the blockchain, with the issuer responsible for minting and burning tokens. In this model, users do not hold legal ownership of the underlying stock; instead, they possess a certificate. Asset selection is limited, and market depth and liquidity depend on the activity of the token’s secondary market.
In contrast, US stock trading via Gate involves purchasing actual US equity assets. This process uses an Omnibus account model to connect with compliant US brokers, and orders are routed directly to major exchanges such as NYSE and Nasdaq. During trading hours, users gain access to deep liquidity and NBBO pricing from US stock exchanges, significantly reducing slippage risk. This model currently supports over 10,000 stocks and ETFs, far surpassing tokenized options. The core distinction is that tokenization creates a mapped asset within the crypto market, while Gate enables direct participation in traditional financial markets.
How Do You Trade US Stocks with USDT?
The complete process of buying US stocks with USDT centers on seamless conversion between stablecoins and fiat, as well as compliant order routing. Users must first complete basic identity verification on the platform. Then, USDT or USDC in the account is automatically converted to USD in real time for US stock trading. The platform handles this conversion in the background, so users do not need to manage fiat deposits or withdrawals themselves.
When a user places a buy order, the order is transmitted to the partner broker via the Omnibus IB model. The partner broker, holding a US broker-dealer license and clearing qualifications, routes the order to the appropriate exchange (such as NYSE or Nasdaq) for execution. Once the trade is completed, stock assets are cleared and settled centrally through the NSCC and DTC systems under DTCC. Throughout the process, the user experience is similar to trading crypto, but the underlying assets enter the US securities clearing system. After selling stocks, the USD proceeds are automatically converted back to stablecoins and returned to the user’s account. Dividends and distributions are also automatically paid in stablecoins.
How Do Trading Hours and Holding Costs Impact Long-Term Investment Decisions?
For users planning to hold US stocks long-term, trading hours and holding costs are key factors. Regular US stock trading hours are Monday to Friday, 9:30 AM to 4:00 PM Eastern Time, with 6.5 hours of trading per day. During these hours, users have direct access to deep liquidity from major US exchanges. Gate will soon support 24/7 trading, further expanding available trading times and enabling users to respond more flexibly to market changes across time zones.
Regarding holding costs, tokenized stock products do not incur funding rates, but their liquidity discounts can widen bid-ask spreads, effectively increasing trading costs. Perpetual contracts typically charge funding fees every eight hours, while CFD products calculate overnight fees daily. These costs can significantly erode returns for users holding positions for weeks or months. In contrast, Gate Stocks operates on a spot model with zero funding or overnight fees, resulting in a holding cost of zero. This makes it more suitable for long-term value investing strategies, rather than just short-term trading.
How Do Asset Settlement and Custody Mechanisms Safeguard Trading Security?
Verifying that assets enter the US clearing system is central to assessing the credibility of this model. Gate Stocks uses an integrated introducing broker model, with partner brokers acting as execution and clearing agents. Partner brokers hold a US SEC-registered broker-dealer license, are FINRA members, and possess self-clearing qualifications. This enables them to act directly as clearing brokers, completing central counterparty net settlement and securities book transfers through NSCC and DTC.
Under this structure, all end-client stock assets are aggregated in a unified Omnibus account registered under Gate. The clearing layer only sees the overall net position of the account, while the creditor relationship between users and the platform is recorded in Gate’s internal ledger. The partner broker is a member of SIPC (Securities Investor Protection Corporation), providing a securities protection framework for the Omnibus account. It’s important to note that SIPC protects client assets at the broker level, not directly the platform accounts of end users.
How Do Margin Trading and Asset Transfer Features Enhance Trading Strategies?
Beyond basic buy and sell functions, the availability of advanced trading tools determines whether a platform can meet diverse strategy needs. Margin trading allows users to borrow funds to buy more stocks (margin buying) or borrow stocks to sell (short selling), amplifying positions whether bullish or bearish. This increases asset utilization and enables two-way trading. For active users seeking hedging or pair trading, this feature is highly practical and is part of future service plans.
Another important aspect is asset transferability. Traditional crypto platforms’ US stock products often create asset silos, preventing users from transferring holdings to other brokers. Gate Stocks plans to introduce a one-click broker transfer feature, enabling users to move stock assets between brokers just like transferring crypto. This breaks asset lock-in, enhancing control and flexibility over holdings.
Summary
Users holding USDT can now directly participate in US stock trading via Gate. Compared to tokenized stock assets, which are limited in number and liquidity, and perpetual contract products with high long-term holding costs, the direct US stock model offers clear advantages in asset coverage, intraday trading depth, and fee structure. Through the Omnibus IB model and compliant broker partnerships, user orders enter major exchanges like NYSE and Nasdaq, benefiting from NBBO liquidity support. Zero holding costs and stable intraday trading environments further lower the barrier for long-term investment. For investors holding stablecoins and seeking US stock allocation, this pathway provides a comprehensive and compliant solution.
FAQ
Does trading US stocks with USDT incur funding or overnight fees?
No. This is a spot trading model, so there are no funding rates as with perpetual contracts or overnight fees as with CFDs. Holding cost is zero.
How are dividends and distributions paid?
Cash dividends or distributions from stocks, after being collected and processed for taxes by the partner broker, are automatically paid to your account in USDT or USDC.
Are trading hours the same as crypto, i.e., 24/7?
Currently, intraday trading hours are Monday to Friday, 9:30 AM–4:00 PM Eastern Time. The platform will support 24/7 trading in the future. Please refer to official announcements for specific launch times.
Are assets protected by SIPC?
The partner broker is a member of SIPC (Securities Investor Protection Corporation), providing a securities protection framework for the Omnibus account. This protection applies to client assets at the broker level, with specific coverage and standards subject to SIPC rules.
Will it be possible to transfer stocks to other brokers in the future?
The platform plans to offer a one-click broker transfer feature, allowing users to transfer stock assets to other brokers that support incoming transfers. Please refer to official announcements for details on launch times and rules.
