Tokenized stocks are gradually finding uses beyond simply tracking the prices of publicly traded companies. Crypto exchange Bitget and its partners are exploring whether these blockchain-based assets can also support trading strategies designed to generate income from derivatives funding rates.

A joint research initiative involving Bitget, tokenization platform Reality and decentralized finance infrastructure provider Keyring examines how tokenized equity positions can be combined with short positions in stock perpetual contracts. The approach aims to reduce exposure to underlying share-price movements while capturing funding payments when market conditions are favorable.

However, the initial results highlight a significant challenge. Although the strategy generated a gross funding premium of approximately 11% to 14% in the study, financing, execution and liquidity costs substantially reduced the potential returns.

The research was published on October 28, 2026, and its findings are based on historical simulations rather than verified live investment performance.

How Bitget's Onchain Stock Strategy Works

The proposed strategy combines tokenized stock exposure with derivatives and lending infrastructure.

Reality provides tokenized equity exposure through its rTokens. These tokens are linked to underlying securities held through arrangements involving licensed brokers. Investors or strategy operators can combine the tokenized positions with short positions in corresponding equity perpetual contracts.

The objective is to offset much of the exposure to changes in the underlying stock price while attempting to earn funding payments from the derivatives position.

In a perpetual futures market, funding payments help keep a contract's price aligned with its underlying market. Depending on the prevailing funding rate and the position held, traders may receive payments or have to pay them.

When funding conditions favor short positions, a strategy that holds tokenized stock exposure and shorts a corresponding perpetual contract may generate funding income. But the outcome depends on the instruments tracking each other closely enough and on the costs of maintaining both positions.

The arrangement also requires infrastructure beyond token issuance. Keyring is responsible for developing the index methodology and associated lending markets, while IPOR Fusion provides onchain vault infrastructure. 1Token supports portfolio monitoring and risk management.

Historical Returns Fell After Costs

The study evaluated a rules-based index using historical data from December 15, 2025, through October 19, 2026.

Its reported annualized net returns were approximately 7% during the in-sample period and 4% during the out-of-sample period. The research also identified a gross funding premium of around 11% to 14%, before financing and other costs were deducted.

These figures need to be read carefully. The gross premium is not the same as the return an investor ultimately receives. Borrowing expenses, trading fees, execution quality and liquidity can all reduce the amount left over.

The difference between the two testing periods is also important. The lower out-of-sample result suggests that performance may change when a strategy is evaluated outside the period used to develop or calibrate its rules.

Historical simulations can help researchers assess a strategy, but they cannot reproduce every condition encountered in live markets. Actual returns may differ because of changing funding rates, unexpected volatility, limited liquidity or delays in executing and settling trades.

For investors, the central question is therefore not whether the model identified a potentially attractive funding premium. It is whether the strategy can capture enough of that premium consistently after all costs and risks are considered.

Why Tokenized Stocks Could Have a Bigger Role in DeFi

Tokenized equities are blockchain-based instruments designed to represent exposure to traditional shares. Depending on their legal structure and issuer, their rights and limitations can differ from those of shares held directly through a conventional brokerage account.

Their potential usefulness extends beyond buying and selling stock-linked assets.

When supported by compatible protocols and appropriate legal arrangements, tokenized assets can be transferred onchain and used as collateral in lending markets. This creates opportunities to combine equity exposure with borrowing, derivatives and automated investment strategies.

In the model explored by Bitget and its partners, tokenized stocks serve as the underlying exposure for a strategy that also uses lending and perpetual contracts.

That structure could make certain financial operations more programmable and easier to integrate into blockchain-based systems. It does not, however, remove the need for reliable custody, accurate pricing, sufficient liquidity or effective risk controls.

The distinction matters because tokenization changes how an asset can be represented and used; it does not automatically make the underlying investment safer or more profitable.

Four Risks Could Reduce Returns

The research identifies several challenges that could affect the strategy in live markets.

1. Funding rates can change direction

The strategy depends partly on funding payments. If funding rates become unfavorable, the short derivatives position may stop generating income and could instead create an expense.

A funding premium observed during one period should not be treated as a permanent source of returns.

2. Financing and execution costs can accumulate

Borrowing costs and trading fees reduce the income left after the positions are established and maintained. Slippage can add another expense when orders are executed at prices less favorable than expected.

Even a strategy designed to limit directional exposure can struggle if its expected income is too small relative to these costs.

3. Collateral values and liquidation risks matter

If tokenized stock collateral loses value or the derivatives position moves against the strategy, margin requirements can become harder to meet.

Leverage can magnify the consequences of these movements. A position may face liquidation before gains in another part of the strategy can be realized or used to cover its obligations.

4. Traditional stock settlement does not always match blockchain speed

Tokenized stock arrangements still depend on underlying securities, market infrastructure and applicable settlement processes. Redemption delays or mismatches between trading venues can complicate the management of positions during volatile markets.

Reliable price feeds and sufficient liquidity are particularly important when tokenized collateral and derivatives trade across different platforms.

Is Bitget Launching a New Investment Product?

The research signals an effort to explore additional uses for tokenized equities within Bitget's broader trading ecosystem. It does not mean that every strategy described in the study is already available to users.

According to the announcement, selected products informed by the research may be developed for Bitget Earn, subject to product reviews, regulatory requirements, eligibility restrictions and availability. No confirmed launch date was specified in the announcement.

Potential users should distinguish between a research model and an available product. They should also review the product's terms, supported jurisdictions, fees, custody arrangements and liquidation rules before considering participation.

The simulated returns should not be interpreted as a promised yield or a forecast of future performance.

What This Means for the Tokenized Stock Market

Bitget's research reflects a broader effort to connect traditional financial exposure with decentralized financial infrastructure.

The first stage of tokenized stock adoption focused largely on giving eligible users access to stock-linked instruments through digital asset platforms. Strategies such as the one explored by Bitget, Reality and Keyring point toward a more complex use case in which those instruments may also serve as collateral or components of systematic trading models.

Whether this approach gains wider adoption will depend on more than the availability of tokenized assets. It will require sustainable economics, dependable market liquidity, transparent asset arrangements and risk controls that work under real trading conditions.

The historical results offer a starting point for evaluating the concept, not proof that it will consistently generate positive returns.

For now, the most significant takeaway is the gap between a funding opportunity identified by a model and the net performance that may remain after the costs of operating it.

Frequently Asked Questions

What is Bitget testing with Reality and Keyring?

The partners are exploring a rules-based strategy that combines Reality's tokenized stock exposure with short positions in corresponding equity perpetual contracts and associated onchain lending infrastructure.

What returns did the historical simulation report?

The study reported annualized net returns of approximately 7% in the in-sample period and 4% in the out-of-sample period. These are simulated results, not verified live returns.

Why were the net returns lower than the gross funding premium?

Financing expenses, trading and execution costs, and liquidity constraints reduced the gross funding premium of approximately 11% to 14%.

Is the strategy available to all Bitget users?

The announcement says selected products may be developed based on the research, subject to reviews, regulatory requirements, user eligibility and availability. It does not confirm that the full strategy is live for all users.

Can tokenized stock strategies guarantee returns?

No. Funding rates can change, costs can rise, liquidity can deteriorate and leveraged positions can face liquidation. Historical simulations do not guarantee future performance.

Conclusion

Bitget, Reality and Keyring are investigating how tokenized stocks can support more advanced onchain financial strategies. The research suggests that combining stock-linked tokens with derivatives and lending can produce measurable funding income under modeled conditions.

But the decline from the gross funding premium to the reported net returns underlines the central challenge: a promising model must still work after costs, liquidity constraints and operational risks are accounted for.

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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Tokenized assets and leveraged derivatives involve significant risks, including the potential loss of capital. Historical simulated results do not guarantee future performance.

By CoinAINews Editorial Team