The Swiss compliant platform Backed Finance’s xStocks is revolutionizing the global stock investment model. By providing 1:1 fully collateralized real listed company stocks, it transforms traditional equity into digital assets that can be freely traded on the blockchain.
In July 2025, Gate will globally launch the xStocks section, becoming the first platform to support both tokenized stock spot and contract trading simultaneously. African investors can trade Apple stocks after New York’s market closes, and Middle Eastern users can configure US stock assets without local brokers—finance without borders is becoming a reality.
What is xStocks? When traditional finance meets blockchain
xStocks is essentially a compliant solution for the tokenization of physical assets. Issued by the Swiss platform Backed Finance, each token is backed 1:1 by real stocks held by regulated third-party custodians (such as InCore Bank and other Swiss banks).
Its operation is based on a trust chain of collaboration among multiple institutions:
- Backed Finance purchases the underlying stocks in the US stock market through Interactive Brokers
- The stocks are transferred to a segregated account at Clearstream Banking (the largest custody institution in Europe under Deutsche Börse)
- When the account confirms the stock deposit, a smart contract on the Solana chain automatically triggers the minting of the corresponding amount of xStocks Token.
These tokens are issued on public chains such as Solana (SPL) and Ethereum (ERC-20), with licensed custodians holding the underlying stocks and undergoing regular independent audits to ensure reserve transparency. Technically, Solana provides the capability of tens of thousands of transactions per second, ensuring instant transaction confirmation; at the same time, it relies on the security and stability of the Ethereum network to form a complementary architecture.
Compared to traditional stock investments, xStocks brings four transformative advantages:
- 24/7 trading: Breaking through the time constraints of the traditional stock market from 9:30 AM to 4:00 PM EST, supporting24⁄7Trading
- Global Access: Users in regions such as Africa and Asia can invest in listed companies without opening a U.S. stock account.
- Fragmented Investment: No need to purchase whole shares; participation starts at just $10, significantly lowering the investment threshold.
- On-chain Free Flow: Tokens can be freely transferred to personal wallets for participation in DeFi staking, lending, and other on-chain applications.
As of August 2025, xStocks manages total assets of approximately 43.6 million USD, covering popular company stock tokens such as Tesla (TSLAx), Apple (AAPLx), and Coinbase (COINx).
TSLAX Explanation: The On-Chain Avatar of Tesla Stock
In the xStocks series, TSLAX is a Token that tracks the price of TSL stock. Each TSLAX Token represents the value performance of one share of TSL stock.
Core Features:
- Price Anchoring: Strictly tracks the real-time stock price of Tesla (TSLA)
- Fractional Investment: Supports small purchases starting from approximately 10 USD
- All-Weather Trading: Breaks through traditional stock market time limitations, achieving 24⁄7Transaction
The main differences between holding TSLAX and directly holding Tesla stock are:
- No shareholder rights: No governance rights such as voting on company decisions
- No cash dividends: Cash dividend distributions of traditional stocks do not directly apply to TSLAX (dividends are usually reflected indirectly through token value adjustments)
- Price exposure only: Purely obtaining the benefits of Tesla’s stock price fluctuations, without involving actual ownership of the company.
Essentially, TSLAX is a price tracking certificate that allows users to participate in Tesla’s stock price fluctuations through crypto assets without having to purchase actual shares.
Step-by-step tutorial: Buy 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. Here are the specific steps to purchase TSLAX:
Account Preparation
- Visit Gate.com to complete account registration
- Enable 2FA two-factor authentication to enhance account security
Fund Recharge
- Prepare USDT (the base currency to purchase TSLAX)
- Go to [Assets] → [Spot] account
- Select USDT to get the deposit address (supports multi-chain deposits)
- It is recommended to use Solana or TRC-20 network to reduce transfer fees
Locate Trading Pair
- Click on 【Trade】 at the top → Select 【Spot】 or 【Alpha Spot Zone】
- Enter TSLAX/USDT in the search box (or directly visit the xStocks area)
Place an order to buy
- Market Order: Execute immediately at the current best price
- Limit Order: Set your ideal purchase price and wait for market fluctuations to trigger.
- Enter the purchase amount (supports fractional trading, minimum 10 USD)
- Confirm the order and complete the transaction
Advanced Features
- Gate offers TSLAX perpetual contracts (up to 10x leverage), supporting both long and short positions.
- Transfer TSLAX to supported DeFi wallets to participate in staking, lending, and other applications to earn additional income.
- Follow Gate’s limited-time events for a chance to receive trading rewards.
Core Advantages and Potential Risks of Tokenized Stocks
Revolutionary Advantages
- Breaking Time and Space Limitations: Tokyo investors can respond to Musk’s tweets to buy and sell TSLAX in the early hours, while Argentine users complete sovereign currency on-chain tunneling when purchasing AAPLX with USDT.
- Settlement Efficiency Revolution: Transaction confirmation is shortened from the traditional finance’s T+2 days to instant completion on-chain, with a funding utilization rate increased by more than 10 times.
- Global Liquidity Pool: Investors from Asia, Europe, and America trade in a unified market, with deep aggregation narrowing the buying and selling spread by 30%.
- Composite Financial Functions: In the Kamino protocol, TSLAX and SOL are composed into LP Tokens, or in Compound Mortgage TSLAX to lend USDC, achieving liquidity integration across asset classes.
Risks and Challenges
- Regulatory Uncertainty: The US SEC has not yet recognized the legality of tokenized stocks, while places like Switzerland and Singapore are relatively open but policies are still evolving.
- Technical Security Risks: In 2025, the Solana network experienced a brief interruption, leading some exchanges to suspend xStocks withdrawals.
- Rights Discrepancy: Holding TSLAX does not grant Tesla shareholder voting rights, and dividends are typically reflected indirectly through token value adjustments.
- Liquidity Risk: According to on-chain data from defioasis, some xStocks targets have limited trading depth, and slippage issues are common.
- Price Decoupling Risk: Extreme market conditions may lead to a short-term price difference of 2%-5%.
The Future Path of Financial Democratization
xStocks represents a paradigm shift in financial market infrastructure. Gate has launched over 10 stock tokens, covering a diverse range of assets from tech giants to ETFs. With daily trading volume exceeding 5 billion USD, this fusion model is attracting close attention from traditional financial institutions.
Future Development Trends:
- Expansion of Derivatives Path: Stock perpetual contracts are more attractive to crypto users due to their high volatility and leverage mechanism.
- Tokenization of Unlisted Equity: Issuing transferable equity tokens on-chain, combined with mechanisms such as DAO governance, to achieve efficient and transparent early-stage equity circulation.
- Evolution of Regulatory Framework: With the popularity of high-performance chains like Solana, more regulatory agencies may establish clear frameworks for tokenized securities.
For ordinary investors, TSLAX is not just a ticket to the growth dividends of TSL, but also an important medium for participating in the evolution of the financial system. As crypto analyst Max said: "On-chain stock trading is not a replacement for traditional markets, but rather a creation of a more inclusive parallel universe.
