- Bitget, Reality and Keyring explore an onchain equity strategy using tokenised stocks, derivatives and DeFi lending.
- Historical simulations showed 7% annualised returns in the initial testing period and 4% out-of-sample period.
- Funding rates, borrowing costs, liquidity and liquidation risks could affect returns.
Bitget, Reality and Keyring have published a joint report examining how tokenised stocks, perpetual futures and decentralised lending combine to create an onchain trading strategy.
The strategy involves holding tokenised stocks while taking short positions in related equity perpetual contracts. This structure generates funding payments while reducing exposure to stock price movements.
The report also analyses the strategy’s costs and risks, including borrowing fees, liquidity requirements and trading expenses.
Strategy Generates 4% Returns in Out-of-Sample Tests
Historical simulations covering December 15, 2025, to October 19, 2026, showed annualised net returns of approximately 7% during the initial testing period and 4% during the out-of-sample period.
The strategy recorded a gross funding premium of 11% to 14%. However, borrowing costs, trading fees, and liquidity constraints reduced net returns.
The approach uses Reality’s rTokens, which represent tokenised real-world assets, alongside short positions in corresponding equity perpetual contracts. When funding rates are positive, traders receive funding payments while maintaining reduced exposure to stock price movements.
Keyring manages the lending markets, IPOR Fusion provides onchain vault infrastructure, and 1Token supports portfolio monitoring and risk management.
The findings demonstrate how tokenised stocks serve purposes beyond direct investment exposure. They also function as collateral for borrowing and as components of automated trading strategies.
Bitget CEO Highlights New Uses for Tokenised Stocks in DeFi
Bitget CEO Gracy Chen said tokenised stocks give investors options beyond simply buying and selling shares. Investors also use them as collateral for loans and combine them with derivatives to develop new trading strategies.
She said the research demonstrates how these tools work together and emphasised the importance of managing costs, liquidity and risk.
The initiative supports Bitget’s Universal Exchange (UEX) strategy, which brings crypto and traditional financial assets together on one platform. Bitget plans to launch selected products based on the research through Bitget Earn, subject to reviews, regulatory requirements, user eligibility and availability.
Keyring Sees Potential for Institutional Investors
Keyring founder Alex McFarlane said bringing equity-basis trading onchain improves transparency and automation for investment strategies. He added that the index provides a benchmark and tools for investment banks, fund managers and commodity trading advisers (CTAs) to develop their own strategies.
McFarlane also said Bitget’s efforts to expand the use of Reality’s rTokens in DeFi support broader adoption. The framework gives institutional investors a structure for building customised strategies using tokenised stocks, lending and derivatives without relying entirely on separate traditional financial platforms.
Key Risks Include Funding Rates and Liquidity
The report identifies several risks that affect the strategy’s returns. Negative funding rates reduce or eliminate income, while changes in collateral values restrict borrowing and increase liquidation risk. Settlement delays and low liquidity also complicate position management across DeFi markets.
Returns therefore depend on funding income, borrowing costs, trading fees, and execution efficiency. The reported returns come from historical simulations, not actual investment results, and do not guarantee future performance.
Bitget Expands Its Tokenised Asset Ecosystem
The research advances Bitget’s plan to expand the use of tokenised traditional assets through its Universal Exchange (UEX) platform.
Bitget reports serving more than 125 million users and providing access to over two million crypto tokens, alongside more than 500 tokenised stocks, exchange-traded funds (ETFs), commodities, foreign exchange instruments and precious metals.
Reality, part of the Bitget ecosystem, issues digital tokens representing real-world assets held in custody through arrangements with licensed brokers.
Keyring provides tools for user verification, lending market management and leveraged positions involving tokenised assets. IPOR Fusion delivers onchain vault infrastructure, while 1Token provides portfolio management and risk-monitoring tools for digital assets.
Together, the companies aim to expand the role of tokenised stocks beyond tracking stock prices, enabling them to support advanced onchain trading, lending and investment strategies.
Related: Bitget Wallet Opens Traditional Banking Rails to 100 Million Crypto Users
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