- Bitget has launched Fixed Coupon Notes tied to tokenized US stocks.
- It allows users to earn predefined USDT coupons while waiting to buy selected rTokens at a target price.
- The product extends tokenized equities beyond spot trading into structured strategies, but investors risk receiving the tokens above market value if the underlying stock falls below the strike price.
Bitget is adding fixed-coupon notes tied to tokenized US equities, extending the competition among crypto exchanges to recreate Wall Street investment products around blockchain-based stocks.
The exchange launched its Fixed Coupon Note, or FCN, Plan on Tuesday. Users deposit USDT and choose a predetermined price at which they are willing to acquire a tokenized stock, while earning a fixed coupon during the product’s term.
The initial lineup includes rTokens linked to Nvidia, Micron Technology, Marvell Technology, SanDisk and SK Hynix. The rTokens are issued through Reality Protocol and designed to track the economic performance of the corresponding securities.
The structure essentially turns a stock-buying target into a yield-bearing position.
If the stock’s observation price at maturity is at or above the selected strike price, the investor receives the USDT principal back along with the agreed coupon. If the price is below the strike, the principal is converted into the corresponding rToken at that strike price, with the coupon still paid in USDT.
That second outcome is where the risk sits.
Unlike simply waiting with a limit order, investors can earn a return on their committed capital. But they also agree in advance to take delivery of the tokenized stock if its price drops below the strike, even when the market price has fallen substantially further.
“There are times when you want exposure to a stock but the price is not where you want it to be,” Bitget CEO Gracy Chen said in a statement shared with AlexaBlockchain.
“FCN gives users a set price they are comfortable buying at and earn while they wait. Bringing stocks onto Bitget was one part of building UEX. Now we are giving users more ways to access and use these assets, beyond simply buying and selling them on spot,” she added.
A Wall Street Structure Moves Into Crypto
Fixed-coupon notes are well established in traditional wealth management.
Conventional equity-linked FCNs typically pay a predetermined coupon while exposing investors to the possibility of receiving the underlying shares rather than their original cash principal if certain price conditions are met. DBS, for example, describes the downside scenario as one in which the investor receives the coupons but has the principal converted into the underlying asset at a predetermined strike price.
Bitget is applying broadly similar economics to tokenized stocks and stablecoin funding.
The company describes the launch as the first crypto-exchange product combining an FCN structure, USDT settlement and delivery of US stock rTokens. That is a narrowly defined claim, however, rather than the first structured yield product built around tokenized equities.
Bybit introduced tokenized stocks into its Dual Asset product on July 23, allowing users to select an xStock, target price and investment term for a non-principal-protected structured yield strategy. Its initial assets included tokenized exposure to Nvidia, Apple, Alphabet, Coinbase, Amazon and SpaceX.
The similarity is important.
Both products allow investors to earn a predefined return while accepting the possibility of settlement in a tokenized equity when a target price is reached. Bitget differentiates its version through its FCN format, USDT settlement and Reality-issued rTokens.
Why Does It Matter?
The development suggests tokenized stocks are moving into a second phase.
Crypto platforms initially competed on whether they could offer blockchain-based exposure to equities at all. They are increasingly competing on what investors can do with those assets once they are inside the platform.
Kraken, for example, expanded xStocks into perpetual futures in February, giving eligible non-US customers leveraged exposure to tokenized equities and equity indexes. The exchange said the contracts can be traded continuously and used for directional, hedging and basis strategies.
Robinhood has taken another route, offering European customers stock tokens that track US-listed securities. Its tokens are derivatives rather than direct ownership of the underlying shares.
Taken together, the products increasingly resemble a parallel capital-markets stack: spot equity exposure first, followed by leverage, yield products and structured strategies.
Bitget has been building toward that model through its wider rToken offering. The company says Reality-powered rTokens are designed to provide 1:1 asset-backed economic exposure, with underlying securities held through brokerage infrastructure and independent verification of the backing.
Tokenization Doesn’t Remove Structured-Product Risk
The convenience comes with additional layers of complexity.
Bitget’s FCN is explicitly non-principal-protected. An investor who receives rTokens at the strike price can suffer an immediate mark-to-market loss when the underlying stock has fallen substantially below that level by maturity.
Consider a simplified example.
An investor might agree to acquire a tokenized stock at $90 while it trades at $100. If it finishes at $80, the investor still receives the tokens based on the predetermined $90 strike, leaving the coupon to offset only part of the decline.
The token itself also needs to be distinguished from directly owning the corresponding public stock.
The US Securities and Exchange Commission said in January that tokenized securities can use different legal structures and confer different rights depending on whether they are issued by the securities issuer itself or by an unaffiliated third party.
That distinction is becoming more relevant as tokenized equities spread across crypto platforms.
Exchanges Are Building Beyond Spot Stocks
The broader race now involves both crypto companies and traditional market operators.
Nasdaq received SEC approval in March for a framework allowing eligible securities to trade and settle in tokenized form, while the New York Stock Exchange’s parent, Intercontinental Exchange, has also been developing blockchain-based trading infrastructure.
Crypto exchanges, meanwhile, are trying to build products around tokenized equities before those markets fully converge with conventional exchanges.
FCNs turn Bitget’s rTokens from something users can simply buy or sell into collateral for a defined investment strategy.
Bitget said it will run a promotional campaign for the FCN product from Aug. 17 through Sept. 18.
The above article “Bitget Brings Wall Street-Style Fixed Coupon Notes to Tokenized US Stocks” was first published on AlexaBlockchain. Read the complete article here: https://alexablockchain.com/bitget-brings-wall-street-style-fixed-coupon-notes-to-tokenized-us-stocks/
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