Crypto exchange Bitget and research firm Block Scholes published a report on October 7, 2026, examining how tokenized stocks function as collateral for cryptocurrency trades. Testing a modeled $1 million portfolio, the researchers found that using tokenized stocks as security deposits reduced required capital from approximately $340,000 to $175,000—a reduction of roughly 50 percent.
The same report, however, identified a significant trade-off: the arrangement increased vulnerability to simultaneous declines across crypto and stock markets.
Portfolio Structure and Comparison
The modeled portfolio consisted of $175,000 in tokenized AI and semiconductor stocks, along with BTC and ETH perpetual positions and a short position on a Nasdaq-100 ETF perpetual.
Two scenarios were tested. In the first scenario, stocks and crypto trades operated in separate accounts, requiring $340,000 total capital. In the second scenario, Bitget's Cross-Asset Unified Account allowed tokenized stocks to serve as collateral for crypto positions, reducing total capital to $175,000. The same $175,000 in stocks effectively served dual functions in this arrangement.
Bitget's platform accepts over 370 eligible assets as collateral, including 125 tokenized U.S. stocks.
Risk Assessment: Liquidation Thresholds
A stress test conducted by Block Scholes revealed the downside of this capital-efficient approach. When tokenized stocks served as collateral, the portfolio faced liquidation after a 21 percent market-wide decline. By contrast, a portfolio using USDT as collateral survived a 27 percent decline.
The difference stems from USDT's price stability during market downturns. When tokenized stocks fall alongside broader markets, their value as collateral diminishes precisely when traders need protection—reducing the buffer before forced liquidation by approximately 6 percentage points.
Block Scholes emphasized that traders should evaluate not only current collateral value but also potential losses and correlation with their positions.
Crypto and Stock Correlation
Since January 2022, the 60-day correlation between Bitcoin and the Nasdaq-100 ETF averaged 0.41, with peaks reaching 0.75. According to the report, correlation remained elevated from mid-2024 onward.
This correlation reflects shared sensitivity to macroeconomic factors. Interest rates, inflation data, and investor risk appetite affect both asset classes. Federal Reserve policy shifts trigger simultaneous declines in both tech stocks and crypto, reducing diversification benefits.
Multifunctional Tokenized Assets
Bitget's tokenized stocks, marketed as rStocks, serve multiple functions. Holders retain stock exposure and receive eligible dividends in USDT. The same assets provide collateral value for other positions and can secure additional stablecoin borrowing.
This efficiency creates compounded risk: a single price decline affects holdings, collateral value, and underlying trades simultaneously.
Industry Context
Bitget CEO Gracy Chen stated that tokenization extends beyond asset accessibility to capital efficiency once assets are on-chain. Chen noted that Bitget implements risk controls proportional to the flexibility tokenization provides.
The tokenized stocks sector has expanded significantly, growing 395 percent in one year according to a RedStone report, as platforms increasingly compete on integration with trading and capital management systems rather than simply bringing traditional assets on-chain.
