Gate xStocks deeply integrates the DeFi ecosystem, with tokenization of stock volume surging by 150%.

In the summer of 2025, tokenized stock trading became the most remarkable growth point in the crypto market. The xStocks section under the globally leading trading platform Gate delivered an impressive report card: platform data showed that the daily trading volume of popular tokenized stocks such as TSLAx (Tesla) and NVDAx (NVIDIA) exceeded 10 million dollars.

Behind this rise is Gate's strategic achievement of deeply integrating traditional financial assets with blockchain technology. Through xStocks, investors can trade 100% physically-backed stock tokens with just USDT, without the need for a traditional brokerage account, experiencing the innovative advantages of 24/7 trading, fractional investing, and instant settlement.

##Latest Updates

The crypto market witnessed two key developments from Gate xStocks in July. At the beginning of July, the platform announced a deepened collaboration with xStocks, launching multiple tokenized stock perpetual contracts including GOOGLX, TSLAX, and MSTRX.

This innovation has achieved leveraged long and short operations on traditional stocks under the USDT pricing system for the first time.

However, the road to innovation also encounters technical challenges. On July 8th, the xStocks area experienced unusual fluctuations: MCDX (McDonald's Stock Token) plummeted over 90% in 35 minutes, and then quickly rebounded.

After investigation by the platform's technical team, it was confirmed that the issue was caused by a temporary malfunction of the market-making robot. Gate has since strengthened the risk control protocols of the market-making system to prevent similar anomalies from occurring again.

On the compliance level, Gate accelerates its layout with the EU MiCA framework. In the second quarter of 2025, the EU has issued licenses to 53 crypto enterprises, providing a clearer regulatory path for innovative products like xStocks.

##Trading Situation

Tokenization of stock trading is becoming one of the fastest growing business segments on the Gate platform. The Q1 2025 platform transparency report shows that Gate's global registered users have surpassed 32 million, with total reserves valued at 10.328 billion USD and a reserve ratio as high as 128.58%.

xStocks trading presents three main characteristics:

• Popular assets centralization: Tesla (TSLAx) and NVIDIA (NVDAx) account for 65% of the total volume.
• Active trading around the clock: During U.S. stock market off-hours, the trading volume accounts for 38%, with significant participation from Asian investors.
• The contract trading has risen rapidly: In the first week after the launch of the perpetual contract, the TSLAx contract volume has surpassed 120 million USD.

It is worth noting that retail investors have become the main force. The fractional share trading feature allows small amounts of capital to invest in high-priced stocks, with the minimum transaction threshold reduced to 5 USDT, attracting a large number of users from emerging markets.

##DeFi Ecosystem Integration

The strategic value of xStocks goes beyond trading channels, but lies in its deep integration with the DeFi ecosystem. Gate has opened up DeFi application scenarios for xStocks tokens, allowing users to inject liquidity into pools with their tokenized stocks such as TSLAx and NVDAx to earn additional returns.

Data shows that the value of xStocks tokens locked in various DeFi protocols exceeds 500 million dollars. This "holding shares to earn interest" model is particularly favored by long-term investors.

In terms of wallet services, Gate's non-custodial Web3 wallet has completed the xStocks asset support upgrade. Users can directly manage their stock token holdings through the wallet and participate in on-chain operations such as staking and lending.

The platform also plans to launch AI-driven automated trading strategies in the third quarter to help users optimize their tokenized stock portfolios.

##Security and Transparency

In the face of an increasingly complex trading environment, Gate has strengthened the risk control system of the xStocks area:

• Dynamic parameter adjustment mechanism: Adjust leverage multiples, margin ratios, and other parameters in real-time according to market fluctuations.
• Zero-knowledge proof verification: Achieved 100% reserve verification using Merkle tree + zk-SNARK technology.
• Normalization of third-party audits: Collaborate with security organizations such as Hacken to conduct regular code audits.

In terms of asset protection, all xStocks Tokens are fully backed by real stocks held by custodians, ensuring value anchoring. The platform's cold wallet system employs a multi-signature mechanism, completely eliminating the risk of single point of failure.

##Future Outlook

As traditional finance and encryption assets accelerate their integration, the xStocks model demonstrates strong vitality. In the second half of 2025, xStocks will break through in three directions:

• Target expansion: Include more technology stocks and index funds to enrich asset selection.
• Cross-chain interoperability: Achieving the free flow of tokenized stocks across multiple chains such as Ethereum and Solana.
• RWA Expansion: Explore tokenization paths for more traditional assets such as gold and bonds.

It is worth noting that traditional financial platforms like Robinhood have announced the launch of Layer 2 blockchain to venture into the field of stock tokenization. The intensifying market competition will drive product innovation into a new stage.

The growth curve of the tokenization stock market is still on the rise. On the xStocks platform, over 2 million global investors are redefining the boundaries of equity investment. They are combining TSLAx positions with encryption, injecting NVDAx tokens into liquidity pools, and still capturing investment opportunities during traditional market closures.

When the Red Bull F1 car races down the track adorned with the Gate logo, behind it is a trading platform with reserves exceeding 10 billion dollars, turning tokenized stocks from an innovative experiment into financial infrastructure. In the future, the boundary between stock codes and token symbols will completely disappear, and the global capital market will usher in a true 24-hour uninterrupted operation on the blockchain.