In July 2025, the global leading cryptocurrency trading platform Gate officially launched the xStocks US stock trading zone, allowing users to directly trade tokenized stocks of tech giants such as Apple, Tesla, and Nvidia using crypto assets like USDT.
This innovative service breaks through the time and regional limitations of traditional US stock trading, opening the door to traditional financial assets for crypto users.
In markets where traditional brokers cannot operate due to regional restrictions, xStocks area saw an on-chain trading volume exceeding 6.64 million USD in its first week, with over 6,500 new users, among which the Nvidia token NVDAx ranked in the top three by trading volume.
What is xStocks? The On-Chain Revolution of Traditional Finance
xStocks is essentially a tokenized stock product issued by the Swiss compliant fintech company Backed Finance, which transforms stocks of Nasdaq-listed companies into digital assets through blockchain technology.
Its core operating mechanism is 1:1 physical asset collateral: Backed Finance buys real stocks (such as NVIDIA NVDA) in the US stock market through Interactive Brokers and deposits them into segregated accounts at compliant custodians like InCore Bank in Switzerland.
Once the assets are custodied, the smart contracts on the Solana chain automatically generate the corresponding number of tokens (e.g., 1000 shares of Nvidia → 1000 NVDAx tokens), distributed globally through Kraken’s subsidiary PDSL under its Bermuda license.
The key features of xStocks compared to traditional stocks are:
- No shareholder rights: Holding NVDAx entitles you to the benefits of NVIDIA’s stock price fluctuations, but does not include voting rights. Dividends are distributed in the form of airdropped tokens.
- 24/7 Trading: Break through the NYSE time restrictions of 9:30 AM - 4:00 PM, supporting24⁄7Trading (price anchored to the closing price during market closure)
- Fragmented investment: Hold partial rights to high-priced stocks like Tesla and Apple with as little as 10 USD.
Currently, xStocks strictly adheres to compliance boundaries and is only open to users outside the United States, primarily serving the crypto-native community that cannot invest in U.S. stocks through traditional brokers.
Practical Guide: Four-Step Process to Purchase NVDAx on the Gate Platform
Step 1: Complete Account Preparation
Log in to the Gate official website or App (non-US IP) and complete identity verification. Recharge USDT on the "Assets" page, and it is recommended to use TRC-20 or BEP-20 chain to save on transaction fees.
Step 2: Enter the Trading Zone
Select "Trading" → "xStocks Zone" from the top navigation bar, or directly enter NVDAx/USDT (NVIDIA token trading pair identifier) in the search box.
Step 3: Analyze Market Data
Check the real-time price chart of NVDAx (synchronized with Nasdaq NVDA stock price), order book depth, and trading volume. Note that prices are frozen during market close, and fluctuations mainly occur during the US stock market opening hours.
Step 4: Place Buy Order
- Market Order: Instant execution, suitable for quick positions (be aware of slippage risk)
- Limit Order: Set your desired buy price (e.g., $1,200), automatically executed when the target price is reached
- After the transaction, NVDAx tokens will be credited to your spot account and can be sold or withdrawn to an on-chain wallet at any time.
On-chain scaling: Advanced application scenarios of NVDAx
Buying NVDAx not only provides exposure to Nvidia’s stock price, but also unlocks yield opportunities in the DeFi ecosystem:
- Cross-platform arbitrage: When NVDAx on Gate USDT price When there is a price difference with Bybit, you can profit by arbitraging across exchanges.
- Collateralized Lending: Create an LP pool with NVDAx and SOL on Kamino Finance to earn trading fee revenue.
- Leverage operation: Open long/short NVDAx through Gate contract market, supporting up to 50x leverage (be aware of liquidation risk).
These features cannot be realized in traditional brokerage systems, reflecting the on-chain interoperability advantages of tokenized assets.
Risk Warning: Three Key Considerations for Trading xStocks
Liquidity Risk
Although NVDAx is a high liquidity asset, most xStocks tokens have limited trading depth. Some less popular tokens have fewer than 20 trades in a single day, which may face high slippage (>1%) or issues with immediate execution.
Cost Structure Differences
xStocks sets a 1% buy-sell spread (market maker hedging costs), plus a platform fee of 0.3% - 0.5%, resulting in a total trading cost that is higher than traditional brokerages.
Asset Security Dependence
The value of the tokens is completely anchored to the underlying stock custody of Backed Finance. If the custodian bank goes bankrupt or there is asset misappropriation, it may trigger a decoupling risk. Although currently a Swiss compliant bank’s segregated account is used, users still need to pay attention to changes in institutional credit.
Future Outlook
As platforms like Gate integrate xStocks, the tokenized stock market is reconstructing the rules of global capital flows. When Argentine investors purchase AAPLx with USDT, they effectively complete the on-chain penetration of sovereign currency; Tokyo programmers trade TSLAx at three in the morning, achieving cross-timezone capital scheduling.
When the stocks in the Swiss bank vault are Solana Smart contracts on the blockchain create connections, and the high walls between the encrypted world and traditional finance are being dismantled by technology. The future has arrived, it just hasn’t been evenly distributed yet.
