Decrypting On-Chain Stock Investment: A Comprehensive Guide to Purchasing XStocks and MSTRX

In June 2025, the Swiss compliance platform Backed Finance launched xStocks — an innovative product that transforms traditional listed company stocks into blockchain tokens. Within just two months, its daily volume surpassed 2 billion USD, covering 25,500 global investors.

This model uses a 1:1 physical asset collateral mechanism, with underlying stocks held by regulated institutions such as InCore Bank in Switzerland, and issues corresponding tokens on public chains like Solana. Each token held by users (such as MSTRx) represents the value of real stocks, but is not restricted by traditional securities trading hours, geographical locations, or minimum thresholds.

Tokenized Stocks vs Traditional Stocks: Core Differences:

| Features | Traditional Stocks | xStocks Tokenized Stocks | | ------------ | ---------------- | ----------------------- | | Trading Time | Exchange Opening Hours | 24/7 All-Day Trading | | Minimum Investment Unit | 1 Whole Share | Fragmented (starting from 10 dollars) | | Settlement Speed | T+2 Days | On-chain Second-level Settlement | | Shareholder Equity | Including Voting Rights and Cash Dividends | Only Price Fluctuation Income | | Compliance Region | Dependent on Local Broker Qualifications | Limited to Non-US Users |

The Giants Behind MSTRX: From MicroStrategy to Bitcoin Empire

MSTRx is an on-chain token that tracks the stock price of MicroStrategy (NASDAQ: MSTR). This company is considered a phenomenal enterprise in the crypto world:

• On August 11, 2020, MicroStrategy purchased 21,454 BTC for an average price of $11,654, starting the "public company hoarding coins" trend.
• On August 11, 2025, the company was renamed Strategy, holding 628,946 BTC (accounting for 3.16% of the total), valued at 76 billion USD, with unrealized gains exceeding 30 billion USD.
• Its stock price has increased by over 3,000% in 5 years, far exceeding Bitcoin's 1,000% during the same period, and is regarded by the market as a "leveraged substitute for Bitcoin".

Due to the high correlation between MSTR's stock price and Bitcoin, holding MSTRx has become a compliant way for crypto investors to indirectly allocate BTC—without needing to directly purchase the stock, one can gain price exposure.

Practical Guide: Purchasing MSTRX in the Gate xStocks Area

Gate.io exchange will globally launch the xStocks section on July 3, 2025, supporting the MSTRx/USDT trading pair. The following is the purchasing process:

Step 1: Account Registration and Preparation

• Visit Gate.com to register an account and complete identity verification.
• Go to the 【Assets】 page and select USDT deposit (recommended Solana or TRC-20 network to reduce fees)

Step 2: Locate the trading pair

• Click on the top 【Trading】 → Select 【xStocks Area】
• Search for "MSTRX/USDT"
• Optional spot trading (directly holding tokens) or contract trading (1 - 10 times leverage to go long/short)

Step 3: Place Order to Buy

• Market Order: Execute immediately at the best price (suitable for quick entry)
• Limit Order: Set a target price (e.g., 170 USDT), waiting for the market to trigger.
• Large transactions are recommended to use the Alpha Zone to reduce slippage.

Note: Dividend processing is different from traditional stocks - MSTRx does not issue cash, but the token value will adjust with the ex-dividend.

Advantages and Risks: The On-Chain Securities Truth You Must Know

The four advantages of tokenized stocks ###

• Global Access: Users from Africa and the Middle East can invest in US stocks without a local broker.
• DeFi Integration: MSTRx can be transferred to protocols like Kamino Finance for staking and lending.
• Transparency: The custodian bank publishes reserve proof monthly to ensure 1:1 asset backing.
• Flexible strategy: supports short selling mechanism, breaking the traditional stock market's one-way restriction.

the three major risks that cannot be ignored

• Liquidity trap: Except for popular assets like TSLAx and MSTRx, most tokens have an average daily trading volume of less than 20, with slippage reaching 1%.
• Regulatory gray area: The SEC has not recognized the legality of tokenized stocks, and policies in some countries are still evolving.
• Technical Risks: The Solana network interruption in 2025 caused multiple exchanges to suspend withdrawals.

##Conclusion: The Future Path of On-Chain Securities

xStocks represents a key experiment in the integration of traditional finance and Web3. Although currently constrained by liquidity and compliance frameworks, its innovative direction has pointed to the future:

• Derivatives Expansion: Stock Perpetual Contracts (Stonk Perps) could become the next breakout point, meeting the high leverage demands of crypto users.
• Asset diversification: extending from listed companies to the tokenization of non-listed equity such as OpenAI, SpaceX.
• Cross-chain interoperability: Expanded from Solana to BNB Chain, accelerating multi-chain ecosystem integration.