How to Trade xStocks on Gate: A New Path Connecting Crypto Assets and TradFi

In July 2025, the world-leading encryption trading platform Gate officially launched the innovative product xStocks trading area, seamlessly connecting the traditional stock market with crypto assets for the first time. Through tokenization technology, users can directly use USDT to trade stocks of NASDAQ-listed companies, breaking the limitations of geography, time, and capital thresholds. This article will detail the core operational logic and strategic framework of xStocks, helping you efficiently participate in this new paradigm of financial integration.

##xStocks Essence: Tokenization of Stock Trading

xStocks does not directly hold stocks of listed companies but instead is a financial derivative that maps the real stock price through blockchain Token. Its core features include:

• 1:1 asset-backed: Each token (e.g., AAPLX represents Apple) is fully collateralized by real stocks held by cooperating institutions, with prices synchronized to the real-time stock prices on Nasdaq;
• No shareholder rights: Holders enjoy the right to price appreciation but do not have voting rights or direct dividends (the platform may distribute alternative earnings in the form of tokens);
• On-chain verifiable: Built on Solana and Ethereum's SPL/ERC-20 standards, supporting cross-chain transfers and wallet custody.

##xStocks Spot Trading Practical Guide

Step 1: Locate the trading area

After logging into your Gate account, select the "xStocks" section in the top navigation bar to view all supported tokenization stock assets. The first batch of listed assets includes:

• COINX (Coinbase), NVDAX (NVIDIA), AAPLX (Apple)
• TSLAX (Tesla), GOOGLX (Google), MSTRX (MicroStrategy)

Step 2: Select trading pair and order type

For example, buying Apple Token:

1. Select the AAPLX/USDT trading pair
2. Enter price and quantity (supports fractional trading, e.g., 0.01 units)
3. Submit a limit order (designated price) or a market order (immediate execution)

Step 3: Position Management and Selling

• After the transaction, the Token will be deposited into the spot account, and profits and losses can be monitored at any time.
• The selling operation is the same as the buying process; just place a reverse order.
• Support withdrawals to personal encryption wallets (such as Gate Wallet)

Leverage and Contracts: Advanced Strategy Operations

In addition to spot trading, xStocks has simultaneously launched the world's first tokenized stock contract market, significantly expanding the strategic dimensions:

perpetual contract operation process

1. Switch to the "Contracts" tab in the xStocks area.
2. Select the underlying asset (e.g., TSLAX perpetual contract) and leverage multiple (1x - 10x)
3. Choose the "long" or "short" direction, set the margin and stop-loss price
4. The system calculates profit and loss in USDT and supports closing positions at any time.

strategy scenario example

• Hedge against volatility: When there is sudden bad news after U.S. stock market hours, you can immediately open a short position on xStocks to hedge against the risk, even if the traditional market is closed.
• Leverage enhances returns: Going long on NVDAX with 10x leverage, be aware of liquidation risk.

##Analysis of Core Trading Mechanisms and Advantages

| Features | Traditional Stock Market | Gate xStocks | |------------|----------------------|----------------------| | Trading Hours | Specific Weekday Hours | 24/7 Around-the-Clock Trading | | Settlement Cycle | T+2 Days | Real-time On-chain Settlement | | Minimum Unit | 1 Whole Share (Partial Support for Fractional Shares) | Any Fractional Share (Starting from 0.0001) | | Access Currency | Fiat Currency (USD, etc.) | USDT and other encryption assets | | Global Access | Regulated Region Restrictions | No Borders Restrictions (Compliant Areas)|

Technical Architecture Highlights:

• Price Synchronization Engine: Integrates with Nasdaq real-time market data via API to ensure the accuracy of Token price anchoring.
• Mixed Liquidity Pool: Integrates market makers and on-chain liquidity to reduce price spread (e.g., SPYX spread ≤ 0.1%)
• Zero Gas Transfer: Transfers within the platform are instant and free, while withdrawals are charged according to public chain standards.

##Risk Warning and Compliance Notice

Despite xStocks lowering the participation threshold, it is still necessary to be vigilant about the following risks:

• Counterparty risk: Assets rely on the solvency of Gate and cooperative custodians (such as Backed Finance)
• Leverage liquidation risk: In contract trading, severe market fluctuations may lead to margin being wiped out.
• Regulatory uncertainty: Tokenization of stocks is an emerging field, and regulatory policies in various countries may be dynamically adjusted.

As of July 20, 2025, the Gate xStocks section has added new underlying assets such as QQQX (Nasdaq 100 Index ETF) and DFDVX (Technology Giants Portfolio ETF), and the product matrix continues to expand.

Through xStocks, Gate is reshaping the interaction paradigm of global assets: a USDT account can bridge cryptocurrencies, tech stocks, and index funds. Whether you are a conservative investor hedging against the volatility of the crypto market or a trader seeking 24-hour long and short operations, this platform offers a borderless financial infrastructure worth exploring.