How to use USDT to buy US stocks? Gate’s real stock trading is officially live, supporting 10,000+ stocks.

The integration of crypto assets with traditional finance is entering a new phase. In the past, if users wanted to participate in the U.S. stock market with cryptocurrencies, they mostly had to choose tokenized stock products or derivative contracts, but these paths had obvious limitations in asset selection, liquidity, and holding costs. Now, Gate, through a compliant brokerage partnership model, enables direct buying and selling of real U.S. stocks using stablecoins like USDT.

Why do crypto users choose to configure U.S. stock assets through Gate?

As crypto asset investors' demand for cross-asset allocation grows, more users are paying attention to traditional financial assets such as tech stocks, AI concept stocks, ETFs, and more within the U.S. stock market. Gate’s real stock trading, which connects stablecoins directly to the U.S. securities market, provides crypto users with a more convenient investment gateway.

First, users can participate in the U.S. stock market without leaving the crypto ecosystem. USDT or USDC in their accounts can be used directly to purchase listed U.S. stocks and ETFs, enabling a one-stop experience from crypto assets to U.S. stock assets.

Second, Gate’s real stock trading covers over 10,000 stocks and ETFs, including large tech stocks, growth stocks, value stocks, and various industry-themed funds. Compared to tokenized schemes that only cover limited assets, users have a broader range of asset choices and can build more diversified portfolios.

In terms of trading experience, orders are directly routed to compliant brokerages, accessing market depth and the National Best Bid and Offer (NBBO) liquidity support from major exchanges like NYSE (New York Stock Exchange) and Nasdaq. For investors concerned with execution efficiency and price quality, this means a trading environment closer to the real market.

Additionally, Gate’s real stock trading adopts a spot trading model, without involving funding rates or overnight holding fees. Users can choose to trade short-term or hold long-term based on their investment goals without incurring additional ongoing holding costs.

For users already holding stablecoin assets, Gate’s real stock trading offers a new channel connecting the crypto market with global capital markets, making cross-asset allocation more efficient, convenient, and transparent.

What are the fundamental differences between stock tokenization and real U.S. stock trading in terms of asset attributes?

Understanding the differences between these two models is fundamental to evaluating their suitability. Stock tokenization falls under the category of RWA (Real-World Asset) tokenization, where the token’s value is anchored to a specific U.S. stock, but trading occurs on the blockchain, with the issuer responsible for minting and burning. In this model, users do not hold legal ownership of the underlying stock but hold a certificate. The asset selection is limited, and market depth and liquidity depend on the secondary market activity of the token, which can lead to price discrepancies with the actual U.S. stock.

In contrast, trading U.S. stocks through Gate involves buying actual U.S. stock assets. This is achieved via an Omnibus account model connected to a compliant U.S. broker-dealer, routing orders directly to major exchanges like NYSE and Nasdaq. During trading hours, users gain access to the liquidity depth and NBBO quotes from U.S. stock exchanges, significantly reducing slippage risk. Currently, this mode supports over 10,000 stocks and ETFs, far exceeding tokenized options. The key difference is: the former is a mapping within the crypto market, while the latter involves direct participation in the traditional financial market.

How to trade U.S. stocks using USDT?

The complete process of using USDT to buy U.S. stocks hinges on seamless conversion between stablecoins and fiat currency, as well as compliant order routing. Users first need to complete basic identity verification on the platform. Then, USDT or USDC in their account is automatically converted into USD for U.S. stock trading. This conversion is handled automatically in the background, so users do not need to manage fiat deposits or withdrawals themselves.

When placing a buy order, the order is transmitted via the Omnibus IB mode to the partner brokerage. The broker, holding a U.S. broker-dealer license and clearing qualification, routes the order to the relevant exchange (such as NYSE or Nasdaq) for matching. After execution, the stock assets are cleared and transferred through DTCC’s NSCC and DTC systems. Throughout this process, the user experience is similar to trading cryptocurrencies, but the underlying assets are actually integrated into the U.S. securities clearing system. When selling stocks, the proceeds in USD are automatically converted back into stablecoins and returned to the user’s account. Dividends and dividends are also automatically paid out in stablecoins.

How do intraday trading hours and holding costs influence long-term investment decisions?

For users planning to hold U.S. stocks long-term, trading hours and holding costs are two critical considerations. The regular trading hours for U.S. stocks are from 9:30 to 16:00 Eastern Time, Monday through Friday, totaling 6.5 hours of intraday trading. During trading hours, users can access the liquidity depth of major U.S. stock exchanges. The Gate platform will support 7x24 trading in the future, further expanding tradable hours to allow more flexibility in responding to market changes across different time zones.

Regarding holding costs, tokenized stock products do not generate funding rates, but their liquidity discounts can widen bid-ask spreads, indirectly increasing trading costs. Perpetual contracts typically charge funding fees every 8 hours, and CFD products calculate overnight fees daily. These costs can significantly erode returns for positions held over weeks or months. In contrast, Gate’s real stock trading operates on a spot basis, with no funding or overnight fees, resulting in zero holding costs. This makes it more suitable for executing long-term value investment strategies rather than short-term trading.

How do asset clearing and custody mechanisms ensure the authenticity and security of trades?

Verifying whether assets are genuinely integrated into the U.S. clearing system is key to assessing the credibility of this model. Gate’s real stock trading employs a comprehensive broker introduction model, with Alpaca acting as the executing and clearing broker. Alpaca holds a registered U.S. SEC broker-dealer license, is a FINRA member, and has self-clearing clearance qualifications. This means it can directly serve as a clearing broker, completing central counterparty netting and securities transfer through NSCC and DTC.

Under this structure, all client stock assets are aggregated into a single Omnibus account registered under Gate’s name. On the clearing level, only the overall net position of this account is visible, while the debt relationship between users and the platform is recorded in Gate’s internal ledger. Alpaca, as a SIPC (Securities Investor Protection Corporation) member, provides securities protection for the Omnibus account. It’s important to note that SIPC protects client assets at the broker level, not directly safeguarding the platform’s end-user accounts. This model balances compliance and asset authenticity, with orders actually routed into the U.S. trading and clearing systems.

What is the value of margin trading and asset transfer features for trading strategies?

Beyond basic buying and selling, the availability of advanced trading tools determines whether the platform can meet various strategic needs. Margin trading allows users to borrow funds to buy more stocks (margin) or borrow stocks to sell (short), thereby amplifying positions when bullish or bearish. This improves asset utilization and enables two-way trading strategies. For active traders interested in hedging or pair trading, this feature has practical significance and is part of future plans.

Another important aspect is asset transferability. Traditional crypto platforms’ U.S. stock products often create asset islands, where users cannot transfer holdings to other brokerages. Gate’s real stock trading plans to offer a one-click transfer feature, allowing users to move their stock assets between brokerages as easily as transferring cryptocurrencies. This breaks asset lock-in issues and enhances user control and flexibility over their holdings.

Summary

Users holding USDT can now participate directly in real U.S. stock trading through Gate. Compared to tokenized assets limited in quantity and liquidity, and perpetual contracts with high long-term holding costs, the direct U.S. stock approach offers significant advantages in asset range, intraday trading depth, and fee structure. Through the Omnibus IB model and compliant brokerage partnerships, users’ orders can reach major exchanges like NYSE and Nasdaq, with liquidity support from NBBO quotes. Zero holding costs and a stable intraday trading environment further lower the barriers for long-term investing. For investors holding stablecoins and seeking U.S. stock exposure, this pathway provides a complete and compliant solution.

FAQ

Are the U.S. stocks bought through Gate real stocks?

Yes. The trading is routed through compliant brokerages accessing major U.S. exchanges like NYSE and Nasdaq, and the underlying assets are genuine U.S. stocks, not tokenized certificates.

Will using USDT to buy and sell U.S. stocks incur funding or overnight fees?

No. This is spot trading, with no funding rates or overnight fees like perpetual contracts or CFDs, so holding costs are zero.

How are dividends and dividends paid out?

Dividends or cash distributions generated by stocks are collected by the partner broker, processed for tax, and automatically paid out in USDT or USDC to your account.

Are trading hours the same as cryptocurrencies, 7x24?

Currently, intraday trading hours are from 9:30 to 16:00 Eastern Time, Monday to Friday. The platform will support 7x24 trading in the future; please follow official announcements for details.

Are assets protected by SIPC?

The partner broker Alpaca is a SIPC member, providing securities protection for the Omnibus account. This protection covers client assets at the broker level, subject to SIPC rules and limits.

Will there be future options to transfer stocks to other brokerages?

The platform plans to offer a one-click transfer feature, allowing users to move their stock assets to other brokerages supporting transfers. Details and timelines will be announced officially.