Bitget said it has published a joint research report with Reality and Keyring examining how tokenised equities could be used to run “equity-basis” strategies on decentralised finance rails. The report models combinations of tokenised equity holdings, perpetual equity derivatives and decentralised lending, focusing on funding dynamics and the financing and execution frictions that determine whether the approach can deliver attractive risk-adjusted outcomes.
The simulations, covering the period from December 15, 2025 to October 19, 2026, indicate that rules-based index performance may be sensitive to costs such as financing charges, trading expenses and liquidity constraints—key factors investors typically assess when considering derivative-driven carry and basis trades in less liquid markets.
Key takeaways
- Price move: No market price move was reported; the release focuses on research findings from historical simulations of an on-chain equity-basis index.
- Catalyst: Bitget, Reality and Keyring published a report detailing how tokenised equities can be combined with perpetual contracts and lending to pursue funding-related returns.
- Key implication: The report stresses that net performance depends heavily on financing costs and liquidity, not just funding premiums.
- Benchmark potential: The index design is presented as a benchmark and building block for banks, fund managers and CTAs looking to develop similar strategies.
What the research set out to prove
According to the report, the work explores whether tokenised equities can expand beyond direct share exposure into lending, collateral management and systematic strategies. The approach is built around a structure that pairs tokenised equity positions with offsetting short positions in corresponding equity perpetual contracts.
Using Reality’s rTokens as the tokenised equity layer, the model aims to reduce exposure to underlying stock price moves while allowing the strategy to capture funding payments when funding rates are positive. Keyring is described as structuring the lending markets, with IPOR Fusion providing on-chain vault infrastructure and 1Token supporting portfolio monitoring and risk management.
How the strategy performed in simulations
Bitget said the simulations generated annualised net returns of approximately 7% during the in-sample period and 4% during the out-of-sample period. The report also identified a gross funding premium of roughly 11%–14%, but noted that net outcomes were shaped by the drag from financing costs, execution expenses and liquidity constraints.
The findings underscore that, even when the underlying funding signal is supportive, the real-world feasibility of equity-basis approaches on decentralised venues may hinge on how efficiently costs are managed and how consistently the system can access liquidity without excessive slippage.
Funding, execution and DeFi-specific risks
Beyond performance, the report details risks associated with executing equity-basis strategies across decentralised markets. It highlights scenarios including negative funding rates, collateral valuation differences, liquidation exposure and settlement delays. It also emphasises that reliable pricing, sufficient liquidity and coordinated margin management are necessary for strategies to remain viable.
That risk framing reflects a core challenge for derivatives-and-collateral strategies in decentralised settings: funding and liquidity conditions can change quickly, while delays or discontinuities in margin and settlement processes can amplify drawdowns.
Why Bitget and partners say this matters
In comments carried in the report, Bitget CEO Gracy Chen said tokenised stocks are “opening up opportunities beyond buying and selling shares,” including use as collateral and integration with derivatives and lending—an approach that, in her view, can consolidate what previously required separate financial platforms. She also said the research highlights the importance of execution costs, liquidity and risk management as part of building Bitget’s Universal Exchange ecosystem.
Keyring’s founder Alex McFarlane said bringing the equity basis trade fully on-chain could make the strategy “more transparent, programmable and accessible,” and argued that the resulting index could serve as a benchmark and set of building blocks for investment banks, asset managers and CTAs developing their own versions.
Bitget also said the research will inform selected products planned for launch through Bitget Earn, subject to product review, regulatory requirements, user eligibility and availability.
All performance figures in the report are based on historical simulations and do not represent realised returns or guarantee future performance.
Bigger picture: what to watch next
For investors, the key question is whether the strategy’s cost structure—especially financing and execution drag—can hold up outside simulated conditions. The next area to watch is Bitget’s product roadmap for tokenised-equity and derivatives-linked offerings within its Universal Exchange ecosystem, alongside ongoing regulatory clarity that could shape access and operating constraints for decentralised lending and perpetual funding strategies.
