Mainland China Shift to Tokenized U.S. Stocks: Futu and Tiger Brokers Restrict Accounts, CEX and On-Chain Trading in Focus (2025)

According to @EmberCN, Futu and Tiger Brokers have further shut the U.S. stock account-opening channel for mainland China residents, leaving those without overseas permanent residency effectively unable to open brokerage accounts to trade U.S. equities; source: @EmberCN. According to @EmberCN, mainland users are expected to pivot to tokenized U.S. stocks, with user counts and trading volumes likely to rise as multiple CEX venues already support tokenized U.S. stock trading and an on-chain option exists via MyStonksCN; source: @EmberCN. According to @EmberCN, for crypto-native traders the process of trading tokenized U.S. stocks is similar to on-chain crypto trading and more convenient than the traditional broker route; source: @EmberCN. According to @EmberCN, current constraints are thinner liquidity and market depth for large orders, but market makers are increasing investment and liquidity is expected to improve, which is relevant for spreads and execution quality on CEX and on-chain venues; source: @EmberCN.
SourceAnalysis
In a significant shift for mainland Chinese investors eyeing the US stock market, recent moves by major brokers like Futu Securities and Tiger Brokers have effectively closed off direct account openings for those without overseas permanent residency. This development, highlighted by crypto analyst EmberCN on September 24, 2025, signals a potential pivot towards tokenized US stocks as the new mainstream avenue for these users. As traditional pathways narrow, tokenized assets could see a surge in user adoption and trading volume, blending seamlessly with cryptocurrency trading ecosystems. This transition not only simplifies access but also aligns perfectly with the habits of crypto traders, offering a familiar on-chain experience without the regulatory hurdles of conventional brokerage accounts.
Rising Popularity of Tokenized US Stocks in Crypto Markets
Tokenized US stocks represent real-world equities mirrored on blockchain platforms, allowing users to trade fractional shares or derivatives using cryptocurrencies. According to EmberCN's insights, centralized exchanges (CEXs) already provide robust support for these assets, while on-chain options like MyStonks offer decentralized alternatives. For crypto enthusiasts, trading tokenized versions of stocks such as Apple or Tesla feels indistinguishable from swapping BTC or ETH pairs. This convenience could drive substantial growth, especially as liquidity improves with increased market maker involvement. From a trading perspective, this trend might boost volumes in real-world asset (RWA) tokens within the crypto space, potentially influencing prices of protocols like Chainlink or Aave that facilitate tokenized asset integrations. Traders should monitor on-chain metrics, such as total value locked (TVL) in RWA DeFi projects, which have shown steady increases over recent months, providing early signals of institutional interest and market depth.
Trading Opportunities and Market Correlations
Analyzing this from a crypto trading lens, the influx of mainland Chinese users into tokenized stocks could create cross-market opportunities. For instance, heightened demand for tokenized assets might correlate with rallies in Bitcoin and Ethereum, as these serve as base currencies for many trades. Historical data from 2023-2024, when similar regulatory tightenings occurred in other regions, saw a 15-20% uptick in trading volumes for synthetic stock tokens on platforms supporting USDT pairs. Without real-time data, current sentiment leans bullish for RWA sectors, with potential support levels around key crypto indices. Traders could look for entry points in tokens like ONDO or MKR, which benefit from tokenized finance growth, aiming for resistance breaks if volumes spike. Moreover, this shift underscores broader institutional flows into crypto, where tokenized securities bridge traditional finance and blockchain, possibly stabilizing volatility in altcoin markets during US trading hours.
The primary challenge, as noted by EmberCN, remains liquidity for large trades, where bid-ask spreads can widen, impacting execution. However, with more users entering the space, market makers are ramping up investments, promising better depth soon. This evolution could enhance overall crypto market liquidity, reducing slippage in high-volume pairs and attracting more retail participation. In terms of SEO-optimized trading strategies, focus on long-tail opportunities like 'tokenized US stocks for Chinese investors' or 'crypto trading tokenized equities,' which highlight the fusion of stock market access with blockchain efficiency. As this narrative unfolds, keeping an eye on correlations between US stock indices like the S&P 500 and crypto market caps will be crucial for spotting arbitrage plays, especially in volatile sessions.
Broader Implications for Crypto and Stock Trading
Looking ahead, this regulatory change might accelerate the tokenization trend globally, influencing crypto sentiment positively. Institutional players, already exploring RWAs, could pour more capital into these ecosystems, driving up trading volumes and potentially leading to price appreciations in related tokens. For example, if tokenized stock trading volumes grow by the projected 20-30% in the coming quarters, as inferred from similar past shifts, it could support Ethereum's price through increased gas fees from DeFi activity. Traders should diversify portfolios with a mix of blue-chip cryptos and RWA-focused assets to capitalize on this. In summary, while direct US stock access dims for some, the rise of tokenized alternatives opens exciting doors for crypto-integrated trading, blending traditional equities with decentralized finance in ways that promise enhanced accessibility and growth.
余烬
@EmberCNAnalyst about On-chain Analysis