In the wave of accelerated integration between traditional finance and crypto assets, xStocks, as a revolutionary tokenized stock product, is leading the transformation of investment methods. It allows global investors to break through geographical, temporal, and financial barriers, enabling direct trading of stocks from giant companies such as TSL using cryptocurrency. This article will take Gate’s TSLAX (Tesla Tokenized Stock) as an example to detail the operational mechanism and practical path of xStocks.
xStocks: When Traditional Stocks Meet Blockchain
xStocks is a tokenized stock asset built on blockchain, which transforms the stocks of companies listed on the NYSE and NASDAQ into digital tokens (such as TSLAX corresponding to TSL stocks), achieving the integration of traditional financial assets with the crypto ecosystem.
Each token strictly adheres to a 1:1 physical asset collateral mechanism. When a user purchases a TSLAX token, the partner broker Backed Finance will buy an equivalent amount of Tesla stocks in the traditional market and deposit them into a regulated custody account (such as a Swiss bank), while simultaneously generating the corresponding token on-chain. These tokens are issued on public chains like Solana (SPL) and Ethereum (ERC-20), with licensed custodians holding the underlying stocks and undergoing regular independent audits to ensure reserve transparency.
Core Features:
- Price Anchoring: Strictly tracks the real-time stock price of the underlying stock (e.g., TSL)
- Fragmented Investment: Supports small purchases starting from approximately $10, significantly lowering the investment threshold for blue-chip stocks
- All-day Trading: Breaks through the traditional stock market time constraints of 9:30 AM - 4:00 PM EST, achieving.24⁄7Transaction
- On-chain free circulation: Tokens can be transferred into DeFi protocols to participate in staking, lending, and other scenarios, achieving "holding shares to earn interest".
TSL: The Tech Giant Reshaping the Automotive and Energy Industries
Tesla Inc. (stock code TSLA) was founded in July 2003 and is headquartered in Austin, Texas, USA. It is a clean energy company focused on electric vehicles, solar panels, and energy storage systems. In 2020, Tesla became the world’s most valuable automotive company, and by July 2025, its market value had exceeded $1.02 trillion (stock price approximately $315.65 per share).
Core business segments:
- Electric vehicles: Model 3/Y/S/X, Cybertruck, and Roadster sports car
- Energy systems: Solar Roof, Powerwall
- Artificial intelligence: Full Self-Driving system (FSD), humanoid robot Optimus
In 2025, TSL’s strategic focus is shifting towards the Robotaxi (autonomous driving taxi) sector, with plans to launch related products in August. This innovative layout is seen as its next growth engine.
Step-by-step tutorial: Purchase TSLAX in the Gate xStocks section
Gate will launch the xStocks section on July 3, 2025, becoming the world’s first platform to support both tokenized stock spot and contract trading simultaneously. Here are the specific steps to purchase TSLAX:
Purchase Process
- Recharge USDT: Go to [Assets] → [Spot] account, obtain the USDT recharge address (multi-chain deposits supported)
- Enter the trading area: Click on [Trading] at the top → Select the [xStocks] zone
- Choose trading pair: Search TSLAX/USDT (Tesla tokenized stock trading pair)
- Place an order to buy:
- Market order: Execute immediately at the current best price
- Limit order: Set an ideal buying price, waiting for market fluctuations to trigger
- Enter the purchase amount (minimum purchase starts from 10 dollars)
- Manage assets: After the transaction is successful, TSLAX will be credited to the spot account, and you can view positions and floating profit and loss on the [Assets] page.
Advanced Features
- Contract Trading: Gate offers TSLAX perpetual contracts, supporting up to 10x leverage for long and short positions.
- DeFi Integration: Transfer TSLAX to compatible wallets (such as Gate Web3 wallet), participate in staking and lending scenarios to obtain additional收益
Core Advantages and Potential Risks of xStocks
Transformative Advantages
- Borderless Investment: African users can trade TSL stocks after the New York market closes, and Middle Eastern users can allocate stock assets without local brokers.
- Settlement Efficiency Revolution: Trade confirmations are shortened from the traditional T+2 days to immediate completion on-chain.
- Composite Financial Functions: Holding TSLAX can be used as collateral to borrow stablecoins, achieving an innovative income model of "earning through holding stocks."
- Cost Optimization: Aggregating global liquidity narrows the bid-ask spread by 30%, and VIP level users enjoy lower fees.
Risk Warning
- No Shareholder Rights: Holding TSLAX does not confer Tesla shareholder voting rights or cash dividends, only capturing price fluctuations.
- Liquidity Risk: Under extreme market conditions, a short-term price difference of 2%-5% may occur, and some tokens may have limited trading depth.
- Regulatory Differences: Services are not available in regions such as the US and Canada, and policy changes may affect access.
- Technical Security: Exchange hacking attacks, interruptions in the blockchain network (e.g., in 2025. Solana potential threats such as temporary downtime
The Future Road of Financial Democratization
xStocks is not only a new product but also a key attempt to reconstruct the global asset flow paradigm. With the popularity of high-performance chains like Solana and the clarity of regulatory frameworks, these tokenized securities are expected to become the core channel connecting traditional finance (TradFi) and decentralized finance (DeFi).
Currently, Gate has launched over 60 types of stock tokens, covering a diverse range from tech giants to ETFs. As the average daily trading volume exceeds 5 billion dollars, this integrated model is attracting close attention from traditional financial institutions.
For ordinary investors, TSLAX is not only a ticket to the innovative dividends of TSL, but also an important medium for participating in the evolution of the financial system. As industry observers have said: "On-chain stock trading is not a replacement for traditional markets, but rather creating a more inclusive parallel universe.
