In 2025, the integration of traditional finance and the crypto world achieved a key breakthrough with the rise of tokenized stocks xStocks. Launched through the Swiss compliant platform Backed Finance, over 60 stocks have been transformed into digital assets on the blockchain, allowing global investors to trade stocks of companies like Tesla, Apple, and Robinhood directly using cryptocurrencies like USDT.
As one of the first trading platforms in the world to support both spot and contract markets for xStocks, Gate’s xStocks zone enables users to invest in traditional financial assets in a completely new way, breaking the limitations of geography, time, and capital thresholds. This article will detail the operational mechanism of xStocks and use HOODX (Robinhood tokenized stocks) as an example to demonstrate the complete purchasing process on the Gate platform.
What is xStocks? The on-chain revolution of Wall Street assets
xStocks is essentially a blockchain tokenized representation of traditional stocks. It was launched by Backed Finance in June 2025, achieving a seamless connection between traditional financial assets and the crypto ecosystem by converting stocks listed on the NYSE and NASDAQ into tokens compliant with the ERC-1400 standard.
The core mechanism is based on 1:1 physical asset backing: Backed purchases real stocks (such as Robinhood) through Interactive Brokers and deposits them into a segregated account at Europe’s top custodian, Clearstream. Then, Solana Mint the corresponding number of tokens (such as HOODx) on a high-performance blockchain, ensuring that each token is fully backed by sufficient stock.
Compared to traditional stock trading, xStocks brings three disruptive advantages:
- 24⁄7Round-the-clock trading: Break the traditional exchange time limits of 9:30 - 16:00, trading is available on weekends and after hours.
- Near-instant settlement: On-chain transaction settlements completed in seconds, bidding farewell to the traditional T+2 delivery system.
- Fragmented investment: Supports fractional trading at the 0.01 share level, significantly lowering the investment threshold.
Currently, xStocks has covered more than 60 popular stocks and ETFs, including Apple (AAPLx), Tesla (TSLAx), NVIDIA (NVDAx), and Robinhood (HOODx), becoming a core bridge linking DeFi and Wall Street.
What is HOODX? The tokenized form of Robinhood stock.
HOODX is the tokenized version of the stock of Robinhood (HOOD). As a well-known commission-free brokerage in the United States, Robinhood has a broad influence in the retail investment sector. Its stock is listed on NASDAQ, while HOODX is the compliant digital mapping of that stock on the blockchain.
Each HOODX token corresponds to 1 share of Robinhood stock, fully collateralized by real stocks held in custody by Backed Finance through Clearstream. Holding HOODX is equivalent to holding the economic rights to the benefits of Robinhood (price fluctuations + dividend distribution), but does not include shareholder voting rights.
In terms of trading features, HOODX has:
- USDT pricing: Supports direct buying and selling using USDT, no need for fiat currency conversion
- On-chain free transfer: Can be deposited into wallets to participate in DeFi applications (such as collateralized lending)
- Low fees: 0 trading fee on the Gate platform, only xStocks protocol charges a 0.3% fee
After the launch of the xStocks section on Gate in July 2025, HOODX became one of the first 8 supported assets and is also the world’s first tokenized stock that supports contract trading.
Gate xStocks Core Functions and Advantages
On July 3, 2025, Gate officially launched the world’s first dual market for tokenized stock spot and contracts, with the first batch including 8 assets such as HOODX, and simultaneously expanding to a total of 14 assets including MSTRx and SPYx on Gate Alpha.
Revolutionary Trading Experience
- 24/7 Trading: Buy and sell HOODX anytime, regardless of whether the stock market is open.
- Fractional Shares: Hold a portion of Robinhood shares with a minimum of $1.
- Contract Leverage: The first stock contract market that supports both long and short positions.
Zero Friction Integration on Chain
- Cross-chain Free Transfers: HOODX can be transferred across multiple chains such as Ethereum, Solana, BNB Chain
- DeFi Compatibility: Tokens can be transferred into wallets to participate in liquidity mining or collateral lending
- No Deposit or Withdrawal Fees: The platform does not charge fees for deposits or withdrawals
Security Compliance Framework
- Full asset collateralization: All tokens are backed 1:1 by real stocks held in custody by Clearstream
- Segregated account protection: Token holders’ rights are unaffected even if the issuer goes bankrupt
- Global compliance access: Utilizing Swiss DLT license + Jersey SPV structure to meet regulatory requirements
According to Gate’s official data, the daily trading volume in this area quickly surpassed 6.64 million dollars after its launch, and the number of users grew exponentially.
Step-by-step tutorial: How to purchase HOODX on Gate
Step 1: Register and Complete Identity Verification
Visit the Gate official website and register an account, go to the 【Identity Verification】 page to complete the verification, Level 1 verification is sufficient to trade xStocks.
Step 2: Deposit USDT
In 【Wallet】 - 【Spot Account】 click 【Deposit】, select USDT and copy the deposit address. Transfer USDT from an external wallet or exchange (TRC-20 network is recommended to save on fees).
Step 3: Enter the xStocks Trading Area
Find the 【xStocks】 section in the top navigation bar or directly search for "HOODX". Select the HOODX/USDT trading pair to enter the trading interface.
Step 4: Place an Order to Buy HOODX
On the trading page:
- Check real-time market data and K-line charts
- Enter the price and quantity in the buy area (e.g., buy 0.01 HOODX for 0.1 USDT)
- Click on [Buy HOODX] to confirm the order details
- Use [Limit Order] to control costs or [Market Order] for immediate execution
Step 5: Asset Management
After the transaction, HOODX will be deposited into the spot wallet. Users can:
- Hold for appreciation
- Go long/short on HOODX in the [Contract Trading] section
- Withdraw to wallets like Phantom to participate in DeFi applications
- Participate in Gate trading activities to win rewards
A New Paradigm in Finance: The Significance and Prospects of Tokenized Stocks
The emergence of xStocks marks a profound restructuring of traditional financial infrastructure driven by blockchain. When brokerages like Robinhood tokenize their own stocks (HOODX), it highlights a historic turning point in the democratization of finance.
Market Transformation Accelerates
Boston Consulting Group predicts that the market size for tokenized assets will reach $19 trillion by 2033. In addition to stocks, the tokenization process for assets such as U.S. Treasury bonds, private equity, and real estate is rapidly advancing:
- Backed partners with Ondo Finance to launch U.S. short-term Treasury bond tokens with an annualized return of 5.3%
- Robinhood launches tokenized equity for unlisted companies like OpenAI and SpaceX in Europe
- The stock contract market pioneered by Gate integrates leverage with a USDT pricing system.
Investment Logic Reconstruction
For ordinary investors, the value of xStocks lies in:
- Breaking geographical restrictions: users in Argentina and Kenya can trade stocks equally
- Improving capital efficiency: dividends are reinvested instantly, assets can be transferred across chains in seconds
- Diversification of strategies: a combination of spot positions + contract hedging + DeFi yield farming
Regulatory challenges still exist, such as the SEC’s cross-border jurisdiction disputes and the issue of missing voting rights have not been fully resolved. However, as BNB High-performance chains such as Chain have completed technical upgrades, and traditional institutions like Standard Chartered Bank and Futu Securities are accelerating their layout, making tokenized securities an irreversible trend in financial innovation.
Future Outlook
As tokenized stocks like HOODX have seen daily trading volumes surpassing million dollars on platforms like Gate, xStocks has moved from proof of concept to the stage of scaled application. This innovative tool, which combines traditional stock economic exposure with the liquidity of crypto assets, is gradually dismantling the century-old barriers that hinder the free flow of global capital.
In the future, as more users purchase Tesla stock tokens through MetaMask or use Apple stocks as collateral for lending on Solana, the boundary between Wall Street and blockchain will completely dissolve—finance will no longer be a privilege of geography or institutions, but rather an indiscriminate flow of bits in the world of code.
