On June 1, Gate officially launched its stock trading service, providing users with a direct channel to the US securities market, fully settled in USDT.
As of this writing, global crypto users hold over $32 billion in stablecoins like USDT, making these funds naturally suited for cross-market flows. However, platforms offering "crypto-powered US stock trading" differ fundamentally in asset structure, settlement paths, liquidity access, holding costs, and dividend processing. These differences determine whether users truly own stocks, can receive dividends, and whether they can execute trades at expected prices during market volatility. Systematically comparing the strengths and weaknesses of each model is essential before choosing a trading path.
Currently, crypto-based US stock trading falls into three main categories based on underlying asset structure.
The first type is tokenized stocks. Project teams issue tokens pegged 1:1 to specific stock prices, maintained through collateral mechanisms or price oracles. Users hold tokens rather than the actual stocks. The assets are governed by smart contracts and the issuer’s custody arrangements.
The second type is CFD (Contract for Difference) or perpetual contract tracking products. Users do not own any underlying stock assets; instead, they enter into price difference contracts with the platform or track stock price indices via perpetual contracts. These products typically incur funding rates or overnight fees.
The third type involves buying stocks directly through regulated brokers. Platforms partner with licensed brokers regulated by FINRA and members of SIPC, clearing and custodying assets in the DTCC system either under user names or omnibus accounts. Users ultimately own stocks settled via DTC.
Gate’s stock trading belongs to the third category. Its partner broker is a FINRA-registered member and SIPC participant, and all trades settle directly through the DTCC system, with assets held at the DTC level. Users no longer hold token representations or contract positions, but traceable stocks within the US settlement system.
Of these three structures, the first two are "crypto certificates," while the third represents "underlying securities assets."
How Do Liquidity Sources and Order Execution Logic Impact Trading Outcomes?
Liquidity determines whether trades can be executed quickly near expected prices, while slippage directly affects actual trading costs.
Tokenized stock liquidity comes from trading pair depth on decentralized or centralized exchanges. If the token supply is limited or market maker funds are insufficient, large orders may cause significant slippage or even price de-pegging.
CFD and perpetual contract liquidity depends on the platform’s internal counterparty pool or market maker pool, essentially platform liquidity rather than true stock market order flow.
Direct US stock exchange connectivity sources liquidity from:
- NYSE (New York Stock Exchange)
- Nasdaq (National Association of Securities Dealers Automated Quotations)
- NYSE Arca (NYSE’s electronic trading platform, formerly Archipelago/Pacific Exchange, mainly trading ETFs and stocks)
- NYSE American (formerly AMEX, now NYSE’s platform focused on small and mid-cap stocks)
- BATS (Better Alternative Trading System, a leading operator of global stock and options markets)
During regular trading hours, retail investor orders can be routed directly into the National Best Bid and Offer (NBBO) execution system.
When Gate users place orders, they are routed to the best quote channels across these five major exchanges, not relying on internal token pools or market maker pools. This ensures users receive the most competitive buy and sell prices available on the US public market at that moment. Large trades can be split and executed via continuous auction, minimizing liquidity exhaustion risk and eliminating high slippage caused by insufficient token supply.
How Does Holding Cost Structure Distinguish Between Short-Term Trading and Long-Term Holding?
Different products impose vastly different costs for holding positions over time.
Tokenized stocks usually have no extra holding fees, but users bear de-pegging risks between the token and underlying asset, as well as implicit costs from issuer custody and auditing.
CFD and perpetual contract products typically charge funding rates (settled every 8 hours) or overnight swap fees. For users holding positions longer than one day, these costs accumulate linearly, making them unsuitable for long-term allocation strategies.
Direct stock ownership incurs zero holding costs. There are no funding rates, overnight fees, or any time-based charges. Users only pay trading fees when buying or selling.
Gate’s stock trading does not generate any funding or overnight fees during the holding period; its fee structure matches spot trading. This setup allows long-term holding strategies to avoid extra time-based expenses, aligning with value investing or dividend reinvestment logic. Compared to perpetual contracts or CFD products, Gate’s approach eliminates time-based holding cost pressures.
How Does Dividend and Corporate Action Processing Validate Asset Ownership?
The handling of stock dividends and corporate actions (splits, mergers, acquisitions, rights offerings, etc.) is a hard indicator of whether users truly own stocks.
In tokenized stock models, dividends are typically distributed by the issuer based on their holdings of the underlying stocks or converted to equivalent tokens via other mechanisms. If custody arrangements are flawed or protocols have loopholes, users may not receive timely or full dividends. Some platforms don’t provide dividends at all, instead adjusting token prices to reflect ex-dividend, meaning users don’t actually receive cash flows.
CFD products usually process dividends via cash adjustments, but amounts may be offset by hedging costs, differing from actual dividends.
With direct stock ownership, dividend processes fully comply with US securities market rules. Cash dividends from listed companies or ETFs are subject to withholding tax at the broker level, with the remaining amount automatically credited to user accounts.
On Gate, dividends earned from holding US stocks are credited automatically in USDT, with no need for users to apply or track ex-dividend dates. After taxes, dividends are deposited directly in USDT. Corporate actions like splits and mergers are handled automatically by the clearing institution (DTC), with share adjustments made without any manual intervention. This mechanism provides the most direct proof of genuine underlying securities ownership.
How Do Asset Range and Trading Thresholds Affect Strategy Diversity?
The number of tradable assets varies greatly across platforms.
Some tokenized platforms only support dozens to hundreds of popular stocks or ETFs, with asset lists curated by the issuer. Users cannot freely select less popular assets, preferred shares, REITs (Real Estate Investment Trusts), warrants, or small/mid-cap US stocks.
CFD product asset ranges are limited by the platform’s market-making capacity and risk controls, usually focusing on highly liquid blue-chip stocks.
Platforms directly connected to US broker systems can cover tens of thousands of stocks, ETFs, REITs, preferred shares, and warrants listed on NYSE, Nasdaq, and other major exchanges. The tradable asset range matches that of traditional US brokerage accounts, without relying on the platform to list specific assets.
Gate’s stock trading covers the full asset pool: users can trade thousands of securities listed on NYSE, Nasdaq, and other exchanges, including stocks, ETFs, REITs, preferred shares, and warrants. As for thresholds, users only need to complete basic KYC to start trading, with funds directly using USDT in their accounts, eliminating FX losses and wire transfer time costs.
What Core Factors Should Be Verified When Choosing a Stock Trading Path?
Based on the above comparisons, investors should prioritize verifying four core elements when selecting a crypto-powered US stock trading path.
- First, confirm whether settlement and custody are completed within the DTC system. Only trades entering the DTCC clearing network count as official US stock trades.
- Second, check if the partner broker is a SIPC member. SIPC provides up to $500,000 (including $250,000 in cash) of securities account protection, which is crucial for asset safety.
- Third, ensure orders are routed directly to exchange order books, not matched internally or quoted by market makers. Direct exchange connectivity guarantees market depth and NBBO pricing.
- Fourth, verify whether dividends are automatically credited in USDT and match post-tax dividend amounts. This mechanism directly reflects whether the underlying asset is a stock.
With these four criteria, users can quickly determine whether a platform’s "crypto-powered US stock trading" is an asset mapping product or a compliant stock channel. Gate’s approach meets all four: DTC settlement, SIPC member broker, direct routing to five major exchanges with NBBO execution, and dividends automatically credited in USDT.
This is the core logic that sets Gate apart in the crypto US stock trading space—substantially integrating traditional securities compliance with crypto asset convenience, rather than merely offering token representations.
Summary
The true differences among crypto US stock trading platforms are not in branding or marketing, but in five uncompromising dimensions: underlying asset structure, liquidity source, holding cost structure, dividend processing, and asset range. Tokenized stocks and CFD products offer convenience, but for users seeking long-term holdings, large allocations, or relying on dividend cash flows, it’s essential to confirm trades are executed via licensed brokers and directly connected to the five major US exchanges.
Gate’s stock trading model, through partnerships with US licensed brokers, enables direct order routing to five major exchanges, settlement into the DTC system, and asset custody at the DTC level. Users trade directly in USDT, with no currency conversion required, zero holding costs, and dividends automatically credited in USDT.
This model preserves the flexibility of crypto assets while providing traditional US brokerage-level asset security and execution quality. As USDT becomes a mainstream cross-market funding tool, choosing Gate’s stock channel is essentially choosing the legal certainty and settlement reliability of your assets.
FAQ
Do I need to convert USDT to USD before trading US stocks?
No. Gate allows users to trade stocks and ETFs directly using USDT in their accounts. Pricing and settlement are handled in USDT during the transaction, with no fiat conversion or FX losses.
Can US stocks bought through Gate enjoy the same shareholder rights as those purchased via US brokers?
Yes. Because Gate clears trades via US licensed brokers within the DTC system, users enjoy full shareholder rights, including cash dividends and voting rights (subject to broker policy). Post-tax dividends are automatically credited in USDT.
Will holding positions incur funding rates like perpetual contracts?
No. Gate’s stock holding costs are zero—there are no funding rates, overnight fees, or any time-based charges. Funding rates only apply to derivatives like perpetual contracts.
How can I confirm that Gate’s US stock trades enter the US settlement system?
Users can verify the following: the partner broker is a FINRA-registered member and SIPC participant, all trades are cleared via DTC, orders are routed directly to five major exchanges and executed at NBBO prices. Additionally, dividends automatically credited in USDT and matching post-tax dividend amounts serve as indirect proof of stock ownership.
