Access US Stocks from India: Tokenized Assets on GM Markets

Indian investors often look to the US equity market for portfolio diversification. However, accessing US-listed stocks and ETFs from India through traditional channels can involve complexities, costs, and regulatory hurdles. At GM Markets, we offer a streamlined, crypto-native pathway for Indian investors to gain direct exposure to US equities, bypassing many traditional frictions and using the efficiency of tokenized assets. Our platform is designed to make global markets accessible and transparent.

The Challenge: Investing in US Stocks from India

• Complex Paperwork and High Minimums: Opening international brokerage accounts often requires extensive documentation, lengthy verification processes, and sometimes substantial initial investment minimums. While some platforms now offer fractional shares, practical initial fund transfers often range from $500 to $1,000 due to remittance costs.
• Foreign Exchange Conversion Fees and Remittance Charges: Sending funds abroad typically incurs multiple fees. Foreign exchange (forex) markups from Indian banks can typically range from 1% to 3.5% on currency conversions, often embedded in the exchange rate rather than listed as a separate fee. Some credit card transactions may incur a 3.5% forex markup plus Goods and Services Tax (GST). Source: The Economic Times Additionally, Indian banks commonly levy fixed processing or remittance charges. For example, ICICI Bank charges ₹1,500 for USD transfers via a branch, while HDFC Bank's flat fees for outward remittances range from ₹500 to ₹1,000. Source: ICICI Bank Source: HDFC Bank Intermediary banks may also deduct additional SWIFT charges, typically $10 to $30 per transaction. Source: Livemint
• Regulatory Limits: The Liberalized Remittance Scheme (LRS): India's Liberalized Remittance Scheme (LRS) permits resident individuals to remit up to USD 250,000 per financial year (April 1 to March 31) for various permissible transactions, including investments in US stocks. This limit applies per individual and covers all overseas remittances, which can restrict investment size for those with multiple international financial activities. A Permanent Account Number (PAN) card is mandatory for all LRS transactions, and the limit is tracked at the PAN level across all banks. Source: Reserve Bank of India
• Tax Collected at Source (TCS): Effective April 1, 2025, for outward remittances exceeding ₹10 lakh (approximately USD 12,000) in a financial year for investment purposes, a 20% Tax Collected at Source (TCS) is applicable on the amount exceeding this threshold. This is an advance income tax that can be adjusted against the remitter's total income tax liability when filing their Income Tax Return (ITR). Source: Income Tax Department of India
• Lengthy Settlement Processes: Traditional cross-border transactions can involve delays in fund transfers and trade settlements, impacting an investor's ability to react to market movements efficiently.

Crypto's Solution: Efficient Access with Tokenized Assets

Cryptocurrency, particularly stablecoins, provides a borderless and efficient medium for value transfer. By utilizing stablecoins, investors can circumvent many of the traditional banking rails and their associated costs and delays, facilitating quicker and more direct access to global markets.

Tokenized stocks connect traditional finance and decentralized finance. These digital representations allow real-world assets to exist on a blockchain, bringing several advantages:

• Fractional Ownership: Tokenized assets enable investors to buy fractions of high-priced stocks, making global equities accessible with minimal capital, often as low as $1.
• Lower Investment Minimums: The ability to trade in small increments reduces the barrier to entry for many investors.
• 24/7 Liquidity: While the underlying markets trade during traditional hours, tokenized assets can be held, transferred, and sometimes traded on-chain around the clock, offering greater flexibility.

What Are Tokenized US Stocks and How They Work on Our Platform?

On GM Markets, tokenized stocks are standard ERC-20 assets that represent economic exposure to a corresponding share of a US-listed stock or ETF. This means you gain exposure to the price movements and economic benefits of the underlying asset, as described on our tokenized stocks learning page.

Our tokens are designed with transparency and security at their core:

• 1:1 Backing: Every token issued on GM Markets is fully backed 1:1 by a real share held in a segregated customer account at regulated broker-dealers, such as Interactive Brokers or Alpaca Markets. These shares are held separately from the broker's own funds under applicable investor-protection arrangements, as detailed on our security page.
• Economic Value Tracking: The tokens track the economic value of the underlying asset. This includes price movements and dividends. Instead of separate cash payouts, dividends are reinvested into the underlying shares, which in turn increases the token's on-chain Net Asset Value (NAV). This total-return model ensures your position continuously reflects the full economic benefit of the underlying asset.
• Proof of Reserves: We prioritize transparency. Our reserves are independently attested in real time by Accountable, a third-party proof-of-reserves provider. This attestation is published on-chain, allowing anyone to verify the collateralization of our tokenized assets against their underlying shares. You can view our live backing ratio on our Proof of Reserves page.

GM Markets: A Platform for US Equities from India

GM Markets, currently in public beta, offers a transparent and efficient platform specifically designed to overcome the traditional hurdles for international investors. We provide a permissionless, self-custodial solution with several key features:

• Permissionless Onboarding: Access our platform via an external crypto wallet, Google account, or an email magic-link. This removes the cumbersome traditional account opening processes and allows for swift, borderless access.
• Simplified Funding with Stablecoins: Fund your account using stablecoins. We use USDF as our unified balance, which is backed 1:1 by USDC and USDT across various chains. This simplifies the deposit process, allowing you to bypass direct foreign exchange conversions and their associated fees.
• Efficient On-Chain Settlement: Trades settle on-chain across leading networks including Base, Arbitrum, Ethereum, and Optimism, offering efficiency, transparency, and the benefits of blockchain technology.
• Abstracted Gas Fees: We abstract away the complexities of gas fees. Your smart account pays native gas, and the equivalent amount is billed in USDC/USDF from your balance. This means you never need to hold a native chain token or worry about managing gas directly.
• Competitive Trading Fees: Our fee structure is transparent and competitive, as outlined on our pricing page. We charge a single trading fee ranging from 10 to 20 basis points (0.10% to 0.20%). The default is 20 bps, which can drop to 10 bps at our top VIP tier as your 14-day trading volume grows. Crucially, there are no hidden custody, inactivity, dividend, or FX markup fees. Deposits and withdrawals are free across all rails, including Apple Pay, card, bank, and stablecoin.

Step-by-Step Guide: Investing in US Stocks on GM Markets

1. Connect Your Wallet: Begin by connecting your existing crypto wallet or creating a secure embedded wallet. We use Privy's multi-party computation (MPC) technology for embedded wallets, ensuring that no single party, including GM Markets, holds your complete private key. Authentication is via biometric or passkey.
2. Deposit Stablecoins: Deposit stablecoins such as USDC or USDT to fund your USDF balance on the platform. Our platform accepts deposits from various chains, making it convenient to move your digital assets.
3. Browse Assets: Explore our wide selection of tokenized US-listed stocks and ETFs. Our current offerings include popular tickers like AAPL, NVDA, MSFT, TSLA, and broad market ETFs such as SPY and QQQ.
4. Place Your Trade: Execute your trades using our Request-For-Quote (RFQ) system. Regulated market-making partners provide real-time quotes against the live underlying market. Your quoted price includes our transparent trading fee, so the "You will receive" line is final.
5. Monitor Your Portfolio: Once your trade is complete, you can monitor your portfolio, which includes fractional shares, and track the performance of your tokenized US equities. You can also explore the extensive DeFi composability options available for your tokens.

Key Advantages for Indian Investors with GM Markets

We believe GM Markets provides an effective solution for Indian investors:

• Lower Barriers to Entry: Start investing in US stocks with a minimum of $1, enabling broader participation in global markets without requiring substantial upfront capital.
• Reduced FX Complexity and Cost: Fund your account directly with stablecoins, bypassing traditional bank transfers and minimizing the impact of foreign exchange conversion fees and remittance charges common with traditional methods.
• Self-Custody and Composability: Maintain full control of your assets in your own wallet. Our ERC-20 tokenized stocks can be lent, borrowed against, supplied as liquidity, or used as collateral across various DeFi protocols like Aave, Morpho, Uniswap, Curve, and CoW Swap.
• Transparency and Security: Benefit from 1:1 backing by real shares, real-time Proof of Reserves attested by Accountable, and smart contract audits by firms like Sherlock, Halborn, Cantina, and Cyfrin. Your shares are held in segregated accounts, independent of GM Markets’ balance sheet.
• Global Access, Local Convenience: Access global markets from India without the typical geographical or regulatory friction of traditional finance, all while managing your assets through a familiar crypto interface.

Frequently Asked Questions

How does GM Markets handle dividends for tokenized stocks?

On GM Markets, we operate a total-return model. Dividends from the underlying shares are reinvested to purchase more of the asset, which then increases the token's on-chain Net Asset Value (NAV). You receive the economic benefit of the dividend through the appreciation of your token's value rather than as a separate cash payout.

What are the fees associated with trading US stocks on GM Markets?

We charge a single trading fee ranging from 10 to 20 basis points (0.10% to 0.20%), which is included in the quoted price. Deposits and withdrawals are free. We do not charge custody, inactivity, dividend, or FX markup fees. Gas fees are abstracted and billed in USDF from your balance.

Is my investment protected if GM Markets discontinues operations?

Yes. A designated security agent has the authority to work directly with the custodian to redeem outstanding tokens against the underlying shares if GM Markets discontinues operations. This redemption path is enforced by the on-chain contract and operates independently of GM Markets' continued existence. Your shares are held in segregated customer accounts, not on our balance sheet.

Can I use these tokenized stocks in other DeFi protocols?

Absolutely. Our tokenized stocks are standard ERC-20 assets, making them highly composable within the broader DeFi ecosystem. You can use them for lending and borrowing, providing liquidity, or as collateral across various decentralized finance protocols.

Is GM Markets available to users in the United States or other restricted jurisdictions?

No, GM Markets is not offered to users in the United States or other restricted jurisdictions. Our platform is designed to serve international investors who seek a permissionless pathway to US equities.

Invest in US Stocks from India with Confidence

GM Markets offers a transparent and efficient platform for Indian investors to diversify their portfolios with exposure to leading US companies and ETFs. We understand the complexities of cross-border investing and have built a solution that uses the benefits of blockchain technology to provide greater access, lower costs, and enhanced transparency.

We are committed to making global financial markets accessible, secure, and permissionless for everyone outside restricted jurisdictions. While tokenized stocks offer significant advantages, it is important to understand that all investments carry risk, and market conditions can move against you. Tokenized assets also carry specific risks related to settlement, counterparty, smart-contract, and custody. We do not provide financial, investment, tax, or legal advice. We encourage you to review our risk and legal disclosures.

Explore the possibilities of tokenized stocks and begin investing in US equities today on GM Markets.

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