Xstocks Revolution: The Ultimate Guide to Buying Tesla Stock Token TSLAX with USDT

The Swiss compliance platform Backed Finance is revolutionizing the global stock investment model with xStocks. By fully collateralizing real listed company stocks on a 1:1 basis, it transforms traditional equity into digital assets that can be freely traded on-chain.

In July 2025, Gate.io launched the xStocks section globally, becoming the first platform to simultaneously support tokenized stock spot and contract trading. African investors trade Apple stocks after the New York market closes, while Middle Eastern users can access US stock assets without local brokerage configuration—finance without borders is becoming a reality.

##What is xStocks? When traditional finance meets Blockchain

xStocks is essentially a compliant physical asset tokenization solution. Issued by the Swiss platform Backed Finance, each token is backed 1:1 by real stocks held by regulated third-party custodians (such as Swiss banks like InCore Bank).

Its operation is built on a trust chain of collaboration among multiple institutions:

• Backed Finance purchases underlying stocks in the US stock market through Interactive Brokers.
• Shares transferred to the segregated account at Clearstream Banking, the largest custodian in Europe under Deutsche Börse.
• When the account confirms the stock deposit, the Solana on-chain smart contract automatically triggers the minting of the corresponding number of xStocks tokens.

These tokens are issued on public chains such as Solana (SPL) and Ethereum (ERC-20), with licensed custodians holding the underlying stocks and regularly undergoing independent audits to ensure reserve transparency. In terms of technical implementation, Solana offers the ability to process 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 investing, xStocks brings four revolutionary advantages:

• Round-the-clock trading: Break through the traditional stock market time limits of 9:30 AM - 4:00 PM EST, supporting 24/7 trading.
• Global access: Users from regions such as Africa and Asia can invest in listed companies without the need to open a US stock account.
• Fragmented investment: No need to purchase whole shares, you can participate with a minimum of 10 dollars, significantly lowering the investment threshold.
• on-chain free circulation: Tokens can be freely transferred to personal wallets to participate 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 Explained: The On-Chain Avatar of Tesla Stock

In the xStocks series, TSLAX is a token that tracks the stock price of Tesla. Each TSLAX token represents the value performance of one share of Tesla stock.

Core features:

• Price Anchoring: Strictly tracking the real-time stock price of Tesla (TSLA)
• Fragmented investment: supports small purchases of around 10 dollars.
• 24/7 Trading: Break through the traditional stock market time restrictions to achieve 24/7 trading.

The main difference between holding TSLAX and directly holding Tesla stocks is:

• No shareholder rights: does not enjoy governance rights such as voting rights in company decisions
• No cash dividends: The cash dividend distribution of traditional stocks does not directly apply to TSLAX (dividends are usually reflected indirectly through token value adjustments).
• Price exposure only: purely to gain from the fluctuations in Tesla's stock price, 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 digital assets without having to purchase actual stocks.

##Step-by-step Tutorial: Purchase TSLAX in the Gate xStocks Section

Gate will launch the xStocks area on July 3, 2025, becoming the world's first platform to support both tokenized stock spot and contract trading simultaneously. The following 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.

Funding Recharge

• Prepare USDT (the base currency to purchase TSLAX)
• Enter 【Assets】 → 【Spot】 account
• Select USDT, obtain the deposit address (supports multi-chain deposits)
• It is recommended to use Solana or TRC-20 network to reduce transfer fees.

positioning trading pair

• Click on the top 【Trading】 → Select 【Spot】 or 【Alpha Spot Zone】
• Enter TSLAX/USDT in the search box (or directly visit the xStocks section)

Place an order to buy

• Market Order: Execute immediately at the current best price
• Limit Order: Set an ideal buying price and wait for market fluctuations to trigger.
• Enter the purchase amount (fractional trading supported, minimum 10 USD)
• Confirm the order and complete the transaction

Advanced Features

• Gate also offers TSLAX perpetual contracts (up to 10x leverage), supporting both long and short positions.
• Transfer TSLAX to a supported DeFi wallet to participate in staking, lending, and other applications to gain additional yield.
• Follow Gate's limited-time events for a chance to receive trading rewards.

##Core Advantages and Potential Risks of Tokenized Stocks

revolutionary advantages

• Break through the limitations of time and space: Tokyo investors can respond to Musk's tweets to buy and sell TSLAX in the early morning, while Argentine users completed the on-chain tunneling of sovereign currency when purchasing AAPLX with USDT.
• Settlement efficiency revolution: Transaction confirmation shortened from the traditional finance T+2 days to on-chain instant completion, with fund utilization 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 bid-ask spread by 30%.
• Composite financial functions: In the Kamino protocol, TSLAX is combined with SOL to form LP tokens, or TSLAX is mortgaged in Compound to borrow 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, causing some exchanges to suspend xStocks withdrawals.
• Equity difference: 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 underlying assets have limited trading depth, and slippage issues are common.
• Price decoupling risk: a short-term price difference of 2%-5% may occur in extreme market conditions.

##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 volumes surpassing $5 billion, this integrated model is garnering close attention from traditional financial institutions.

Future development trends:

• Derivatives Path Expansion: Stock perpetual contracts are more attractive to crypto users due to their high volatility and leverage mechanism.
• Non-listed equity tokenization: on-chain issuance of transferable equity tokens, combined with mechanisms such as DAO governance, to achieve efficient and transparent early-stage equity circulation.
• Regulatory Framework Evolution: With the popularity of high-performance chains like Solana, more regulatory agencies may establish a clear framework for tokenized securities.

For ordinary investors, TSLAX is not only a ticket to Tesla's growth dividends, but also an important medium for participating in the evolution of the financial system. As crypto analyst Max stated: "on-chain stock trading is not a replacement for traditional markets, but is creating a more inclusive parallel universe."