Gate Stock Token Trading FAQ: The 7 Most Frequently Asked Questions by Investors

Since its establishment in 2013, Gate has provided digital asset services to over 49 million users worldwide. As one of the top three exchanges globally, Gate is committed to enabling users to participate in traditional financial markets’ price movements within a unified cryptocurrency account through the Gate TradFi zone and stock token products, offering a one-stop experience.

Core Definitions

What is a Gate Stock Token? We can understand it as an innovative financial bridge. It is a tokenized product that allows users to conveniently participate in the price fluctuations of traditional stocks on the Gate cryptocurrency platform.

Essentially, it falls under the category of digital securities or tokenized securities. While it tracks the stock prices of traditional listed companies like Apple and Tesla, it is fundamentally a digital asset issued and transferred on a blockchain.

Imagine it as mapping ownership and economic rights of a traditional stock onto the blockchain in a compliant manner, generating a corresponding digital certificate. What you hold is the ownership of this digital certificate.

Product Differences

You may have heard of ETF leveraged tokens. This is another popular product on the Gate platform. The core difference between stock tokens and ETF leveraged tokens lies in leverage and target.

Gate’s ETF leveraged tokens are designed to automatically rebalance to track the daily price movements of the underlying asset by 3x or 5x, inherently carrying leverage.

In contrast, stock tokens aim to provide easy access to the price movements of traditional stocks, focusing more on asset accessibility and trading efficiency.

They do not have built-in leverage, so you don’t need to manage margin or risk of liquidation. It’s more like conducting a “spot stock” trade within a cryptocurrency platform.

Operating Mechanism

Trading Gate stock tokens is very similar to trading other digital assets like BTC or ETH. You can buy and sell directly on the Gate spot trading market using stablecoins like USDT.

Regarding pricing, the price of stock tokens closely anchors the real-time price of their underlying stocks in traditional markets, with slight premiums or discounts driven by market supply and demand.

The operation behind this relies on a complex financial engineering and compliance structure. This is usually managed by professional third-party institutions that handle custody and rights mapping of the underlying stock assets, while Gate provides a smooth trading interface and liquidity.

Compliance and Security

Digital securities (Tokenized Securities), like traditional securities, are subject to existing legal and regulatory frameworks worldwide. Compliance is a prerequisite for their operation.

As a product provider, Gate always prioritizes compliance and security. Gate not only commits to 100% reserves but is also one of the first mainstream exchanges to introduce zero-knowledge proof technology to verify asset reserves.

Additionally, Gate has obtained important licenses in multiple jurisdictions, including a full license from the Dubai Virtual Asset Regulatory Authority (VARA) and a MiCA license from the Malta Financial Services Authority (MFSA), establishing a global compliance footprint.

Fee Structure

Trading stock tokens on Gate mainly involves trading fees. Similar to other spot trading on the platform, the fee rate varies according to your VIP level.

It’s important to note that this product may also involve management fees to cover the complex financial structures and operational costs behind it. For example, Gate’s ETF leveraged products charge a daily management fee of 0.1%.

For stock tokens, it’s recommended to check the latest fee announcements or product details on the official Gate website for the most accurate information. Higher VIP levels generally mean lower fees.

Trading Advantages

Beyond the convenience of “one-stop trading,” stock tokens bring efficiency innovations. Imagine that traditional securities settlement usually takes T+2 days (two business days after the trade), whereas blockchain-based digital securities settlement can achieve T-instant (instant settlement).

This means trade confirmation and ownership transfer can be completed instantly, greatly reducing counterparty risk and settlement failure.

Moreover, it breaks time and geographic restrictions. Through the Gate platform, users can seamlessly trade stocks of well-known global companies across different time zones during service hours, no longer constrained by traditional exchange opening hours.

Integrated Investment

Gate’s vision is to create a unified account system. Under this account, you can freely allocate funds—buy BTC3L during a bull market or allocate Tesla stock tokens during economic recovery.

This integration greatly enhances capital efficiency and strategic flexibility. You don’t need to transfer between multiple platforms or manage complex fiat and crypto conversions; you can build a diversified portfolio spanning the crypto world and century-old industrial giants within a single interface.

For investors looking to diversify into global assets but starting from the crypto space, this is undoubtedly one of the most efficient entry points.

Summary

On the Gate platform, an order to purchase Tesla stock tokens can be confirmed in less than 1 second. On the other side, the partner institution responsible for custody updates the ledger records of traditional Tesla stock holdings in real-time. What you buy is not a traditional stock certificate but a digital pass to the future value of the company.

Here, native crypto users gain their first convenient and compliant way to directly access the growth dividends of tech giants like Apple and Google. Meanwhile, traditional investors find a new way to view and allocate assets with innovative thinking.