What is xStocks? A step-by-step guide on how to trade NVDAX (NVIDIA tokenized stock) on Gate.

In the summer of 2025, the global fintech sector will witness a silent revolution. The xStocks product launched by the Swiss Compliance asset tokenization platform Backed Finance quickly gained support from leading trading platforms such as Gate.

This innovative product transforms 61 stocks, including Tesla, Apple, and Nvidia, into tokenized assets that can be traded 24/7 through blockchain technology, fundamentally reshaping the way global investors participate in the stock market.

Among them, NVDAX, representing NVIDIA, has become one of the most关注的标的 in xStocks due to the strong performance of its underlying assets and its core position in the wave of artificial intelligence. This article will delve into the operating mechanism of xStocks, and using the Gate platform as an example, detail the entire purchase process of NVDAX.

##What is xStocks? Unveiling the Veil of Tokenized Stocks

xStocks is an innovative financial product launched by the Swiss compliance fintech company Backed Finance, which essentially tokenizes stocks from traditional financial markets using blockchain technology. Each token represents the stock of a listed company (such as NVIDIA, Apple, Tesla) and is strictly backed by physical stocks at a 1:1 ratio.

These underlying stock assets are custodied by regulated third-party institutions, primarily Swiss banks such as InCore Bank and Maerki Baumann, ensuring asset transparency and verifiability.

The biggest difference from traditional stocks is that xStocks are issued in the form of SPL standard tokens on the Solana public chain, and can also be cross-chain to other mainstream public chains such as Ethereum, Avalanche, and Base. This technological foundation gives it three revolutionary features:

• Round-the-clock trading: Break through the traditional stock market trading hours of 9:30 AM - 4:00 PM ET and achieve 24/7 uninterrupted trading.
• Fractional investment mechanism: Supports small investments of at least 10 dollars, significantly lowering the participation threshold.
• On-chain free circulation: Tokens can be deposited into non-custodial wallets to participate in on-chain operations such as staking and lending in DeFi protocols.

But investors should be aware of key restrictions: xStocks does not grant shareholders voting rights, cash dividends are distributed in the form of token airdrops, and currently, it mainly targets users in regions where it is difficult to conveniently open stock accounts.

The Operating Mechanism and Core Controversies of xStocks

Asset Anchoring and Token Minting

Backed Finance achieves the value linkage between traditional stocks and on-chain tokens through precise design: first, real stocks are purchased through channels such as Interactive Brokers and stored in a segregated account at Clearstream, a subsidiary of Deutsche Börse; then, corresponding tokens are minted on the Solana chain at a 1:1 ratio (for example, 1000 shares of Nvidia stock correspond to 1000 NVDAX tokens).

Price synchronization relies on Chainlink oracles to obtain real-time Nasdaq quotes, although on-chain transactions often exhibit a deviation of around 0.3%, creating opportunities for arbitrageurs.

legal structure essence

DigiFT analyst Ryan pointed out that xStocks token is essentially a type of corporate debt structure, rather than a true equity token. This design circumvents the registration process required for equity transfer, eliminates the stamp duty burden, and allows the issuer to not hold custodial qualifications.

This special structure explains why token holders do not have shareholder rights and determines its dividend distribution method - realized directly through token airdrops, rather than traditional dividend payments.

Liquidity Challenge

Despite the novelty of the concept, xStocks still faces real challenges. On-chain data shows that trading activity is highly concentrated on star assets. According to Gate xStocks market data, on August 6, 2025, COINx ($8.46 million), GOOGLx ($5.39 million), and HOODx ($5.23 million) accounted for the vast majority of the shares among all tokenized stocks listed on Gate.

Most underlying assets have insufficient liquidity, and the slippage for some trading pairs is significant, especially during non-USD trading hours, where the bid-ask spread may widen to 3%, affecting the trading experience.

Why Choose NVDAX? The On-Chain Investment Value of Nvidia

Among the first tokens launched on xStocks, NVDAX, representing Nvidia, demonstrates unique configuration value. As a core leader in the field of artificial intelligence computing, Nvidia's stock (NVDA) has always been a barometer for tech stocks in the traditional stock market.

By trading NVDAX on the Gate platform, investors gain the following advantages:

• Lowering the entry threshold: Nvidia's single stock price has surpassed $1000 by July 2025, while NVDAX supports fractional investments starting from $10.
• Capture opportunities during non-trading hours: NVIDIA often releases significant product updates after stock trading hours, allowing for instant market response through NVDAX.
• Diversification of hedging tools: Gate offers NVDAX/USDT perpetual contracts, supporting 1-10x leverage for long and short positions, flexibly responding to market fluctuations.

Data from 2025 shows that the tokenization stock trading volume on the Gate platform increased by 150% year-on-year, with NVDAX becoming one of the most active targets due to its underlying asset's high growth potential.

Step-by-step guide: How to purchase NVDAX on the Gate platform

As a global leading cryptocurrency trading platform, Gate will launch the xStocks trading zone in July 2025, simultaneously supporting spot and contract trading. Below is the detailed process for purchasing NVDAX using Gate:

preparation work

1. Account Registration: Visit Gate.com (the unified domain name after the brand upgrade in 2025) to complete the registration.
2. Asset Recharge: Recharge USDT (recommended) or other supported crypto assets to the Gate spot account.
3. Regional Confirmation: Ensure the account is not in a restricted area.

Web version purchasing process

1. Log in to your account, click on the top navigation bar 【Trading】 to enter the trading interface.
2. Select the 【Spot】 or 【Contract】 section on the left (for first-time users, it is recommended to choose Spot)
3. Enter "NVDAX" in the trading pair search box and select the NVDAX/USDT trading market.
4. Select the order type in the middle of the trading interface:

• Market Order: Executes immediately at the best available market price
• Limit Order: Set the desired purchase price and wait for a match.
• Take Profit and Stop Loss: Advanced Strategy Orders (suitable for volatile markets)

5. Enter the purchase quantity (decimal purchases are supported), confirm the handling fee, and submit the order.

###App mobile operation

1. Open the Gate App and click the bottom 【Trade】 icon.
2. Select the 【Spot】 tab at the top
3. Click on the trading pair area, search for "NVDAX" and select the NVDAX/USDT market.
4. Enter the purchase quantity and type in the bottom trading panel, slide to confirm the order.

Advanced Features

• Alpha Zone: Professional users can access Gate Alpha to trade NVDAX, enjoying lower slippage and faster matching.
• Cross-chain transfer: After purchase, NVDAX can be transferred to a non-custodial wallet that supports the Solana chain (such as Solflare) to participate in the DeFi ecosystem.
• Contract Trading: Use leveraged trading NVDAX in the 【Contract】 section, with a maximum support of 10x leverage (pay attention to risk management)

Gate is launching a "Trading Competition" event in July 2025 to promote the xStocks section, where users who meet the daily trading volume requirements can receive rewards of up to 100 USDT. New users who complete their first trade will also receive a contract experience voucher and platform Token GT.

##Opportunities and Risks Coexist: xStocks Investment Considerations

Analysis of Core Advantages ###

• Borderless participation: Users in traditionally underserved areas such as Africa and Southeast Asia can directly invest in global quality assets through cryptocurrency wallets.
• DeFi ecosystem integration: Users can provide NVDAX/USDT liquidity on platforms like Raydium to earn trading fees and rewards.
• Tax optimization potential: The tokenization structure avoids the registration requirements for equity transfers, exempting it from stamp duty in certain regions.

is a risk that cannot be ignored.

• Liquidity risk: Aside from popular targets (TSLAx, NVDAx, AAPLx), most xStocks have limited trading depth, and large transactions may face slippage.
• Rights deficiency: Token holders have no voting rights in shareholder meetings, and their participation in corporate governance channels is limited.
• Technical dependence: Price relies on oracle feeds, which may lead to temporary decoupling in extreme market conditions.

Financial technology analysts pointed out that the rise of xStocks in 2025 represents the maturity of the "Asset Tokenization 2.0" wave. Compared to earlier pure algorithm synthetic assets like Mirror Protocol, models characterized by physical collateral and compliance custody significantly enhance market confidence.

##Industry Benchmark: The Future Evolution of Tokenization Securities

As the trading volume of xStocks on platforms like Gate steadily increases, industry exploration is deepening along two paths:

Derivative Path: The liquidity constraints in spot markets have created a demand for stock perpetual contracts ("stonk perps"). These derivatives, which do not require physical delivery and rely on oracle pricing, have been first tested on decentralized platforms like Hypeliquid, offering high leverage and a round-the-clock trading experience that aligns better with crypto user habits.

Tokenization of Unlisted Equity: On-chain equity circulation is regarded as a revolution in early investment exit mechanisms. By tokenizing the equity of unlisted companies such as SpaceX and OpenAI, combined with DAO governance and smart contract locking mechanisms, a more transparent private equity market can be constructed.

The background of the Backed Finance team has also attracted attention. The three co-founders were involved in the DAOstack project, which raised $30 million in funding from 2017 to 2018, but ultimately ended up shutting down. This history has become a focal point of community discussion, but the team successfully completed a $9.5 million Series A financing round in April 2024, led by Gnosis, demonstrating capital's recognition of its new direction.

##Future Outlook As traditional fintech companies like Coinbase and Robinhood gradually embrace blockchain settlement systems, the new trading model represented by xStocks is moving from the fringes to the mainstream. Gate platform data shows that the number of new user registrations in its xStocks section has increased by 200% year-on-year, with over $500 million worth of xStocks tokens entering the DeFi ecosystem through staking.

The future has arrived, but it is not yet evenly distributed. Whether the final form is a fleeting financial experiment or an on-chain gateway to traditional financial markets, xStocks provides a window for global investors to observe the future of finance.