What is xStocks? A step-by-step guide to purchasing HOODX (using the Gate xStocks section as an example)

Question

In 2025, the integration of TradFi and the crypto world achieved a key breakthrough with the rise of tokenized stocks xStocks. Launched by the Swiss compliance platform Backed Finance, over 60 stocks have been converted into digital assets on the blockchain, allowing global investors to trade shares of companies like TSL, Apple, and Robinhood directly using crypto assets such as USDT.

As one of the first trading platforms in the world to support both spot and contract markets for xStocks, Gate's xStocks area allows users to invest in traditional financial assets in a completely new way, breaking the constraints of geography, time, and capital thresholds. This article will detail the operational mechanism of xStocks and use HOODX (Robinhood Tokenized Stock) as an example to demonstrate the complete purchasing process on the Gate platform.

##What is xStocks? The on-chain revolution of Wall Street assets

xStocks is essentially a blockchain tokenization representation of traditional stocks. It was launched by Backed Finance in June 2025, achieving a seamless connection between traditional financial assets and the crypto ecosystem by converting stocks listed on the NYSE and NASDAQ into tokens compliant with the ERC-1400 standard.

Its core mechanism is based on a 1:1 physical asset anchoring: Backed purchases real stocks (such as Robinhood) through Interactive Brokers and deposits them into a segregated account at Clearstream, a top European custodian. Then, it mints the corresponding amount of tokens (such as HOODx) on high-performance blockchains like Solana, ensuring that each token is fully backed by stocks.

Compared to traditional stock trading, xStocks offers three disruptive advantages:

24/7 All-day trading: Break the time limit of traditional exchanges from 9:30 to 16:00, allowing trading on weekends and after hours.
Near-instant settlement: on-chain transactions settle in seconds, bidding farewell to the traditional T+2 settlement system.
Fragmented Investment: Supports fractional trading at the level of 0.01 shares, significantly lowering the investment threshold.

Currently, xStocks has covered more than 60 popular stocks and ETFs, including Apple (AAPLx), Tesla (TSLAx), NVIDIA (NVDAx), and Robinhood (HOODx), becoming a core bridge linking DeFi and Wall Street.

What is HOODX? The tokenized form of Robinhood stocks

HOODX is the tokenized version of Robinhood's stock (HOOD). As a well-known zero-commission brokerage in the United States, Robinhood has a significant influence in the retail investment space. Its stock is listed on NASDAQ, while HOODX is the compliant digital mapping of that stock on the blockchain.

Each HOODX Token corresponds to 1 share of Robinhood stock, fully collateralized by real stocks held in custody by Backed Finance through Clearstream. Holding HOODX is equivalent to holding the economic rights of Robinhood (price fluctuations + dividend distribution), but does not include shareholder voting rights.

In terms of trading features, HOODX has:

USDT pricing: Supports direct buying and selling using USDT, no need for fiat currency exchange.
On-chain free transfer: can be deposited into wallets to participate in DeFi applications (such as collateral lending)
Low Fees: Gate platform trading has 0 fees, only the xStocks protocol charges a 0.3% fee.

After the launch of the xStocks section on Gate in July 2025, HOODX became one of the first 8 supported assets and is also the world's first tokenized stock to support contract trading.

##Core Functions and Advantages of Gate xStocks Zone

On July 3, 2025, Gate officially launched the world's first tokenization of stock spot and contract dual market, with the first batch including 8 underlying assets such as HOODX, and simultaneously expanding to a total of 14 assets including MSTRx, SPYx on Gate Alpha.

revolutionary trading experience

24/7 trading: You can buy and sell HOODX at any time, regardless of whether the stock market is open.
Fractional shares investment: Hold partial shares of Robinhood with as little as 1 USD.
Contract leverage: The first to create a stock contract market, supporting both long and short operations.

zero-friction on-chain integration

Cross-chain free transfer: HOODX can be transferred across multiple chains such as Ethereum, Solana, BNB Chain.
DeFi compatible: Tokens can be transferred to wallets to participate in liquidity mining or collateralized lending.
No deposit and withdrawal fees: the platform does not charge any fees for deposits and withdrawals.

Security Compliance Framework

Full asset collateralization: All tokens are supported 1:1 by real stocks custodied by Clearstream.
Segregated account protection: Even if the issuer goes bankrupt, it does not affect the rights of token holders.
Global Compliance Access: Utilize Swiss DLT license + Jersey SPV structure to meet regulatory requirements

According to official data from Gate, the trading volume in this area quickly surpassed 6.64 million USD on the first day after launch, and the number of users has increased exponentially.

Step-by-Step Guide: Complete Process to Purchase HOODX on Gate

Step 1: Register and complete identity verification

Visit the Gate official website and register an account, go to the [Identity Verification] page to complete the verification, Level 1 certification is sufficient to trade xStocks.

Step 2: Recharge USDT

In 【Wallet】 - 【Spot Account】 click 【Deposit】, select USDT and copy the deposit address. Transfer USDT from an external wallet or exchange (recommended to use TRC-20 network to save on fees).

Step 3: Enter the xStocks trading area

Find the 【xStocks】 section in the top navigation bar, or directly search for "HOODX". Select the HOODX/USDT trading pair to enter the trading interface.

Step 4: Place an order to buy HOODX

On the trading page:

View real-time market data and K-line charts
Enter the price and quantity in the buy area (e.g., buy 0.01 HOODX for 0.1 USDT)
Click on 【Buy HOODX】 to confirm the order details.
Use [Limit Order] to control costs or [Market Order] for immediate execution.

Step 5: Asset Management

After the transaction, HOODX will be deposited into the spot wallet. Users can:

Hold and wait for appreciation
Long/Short HOODX in the [Contract Trading] area
Raise to participate in DeFi applications with wallets such as Phantom.
Participate in Gate trading activities to win rewards

A New Paradigm in Finance: The Significance and Prospects of Tokenized Stocks

The emergence of xStocks marks a profound reconstruction of traditional financial infrastructure driven by Blockchain. When brokerages like Robinhood tokenize their own stocks (HOODX), it highlights a historic turning point in the democratization of finance.

Market transformation accelerates

The Boston Consulting Group predicts that the market size of tokenized assets will reach 19 trillion USD by 2033. In addition to stocks, the tokenization process of assets such as U.S. Treasury bonds, private equity, and real estate is advancing rapidly.

Backed collaborates with Ondo Finance to launch a Token backed by US short-term treasury bonds with an annualized return of 5.3%.
Robinhood launches tokenized equity for private companies like OpenAI and SpaceX in Europe.
Gate's pioneering stock contract market integrates leverage with the USDT pricing system.

investment logic reconstruction

For ordinary investors, the value of xStocks lies in:

Break through geographical restrictions: users in Argentina and Kenya can trade stocks equally.
Enhance capital efficiency: Instant reinvestment of dividends, asset cross-chain transfer in seconds
Strategy Diversification: Combining Spot Positions + Contract Hedging + DeFi Yield Farming

Regulatory challenges still exist, such as disputes over SEC cross-border jurisdiction and issues like the lack of voting rights that have not been fully resolved. However, with high-performance chains like BNB Chain completing technological upgrades, and traditional institutions like Standard Chartered Bank and Futu Securities accelerating their deployments, tokenization of securities has become an irreversible trend in financial innovation.

##Future Outlook As tokenized stocks like HOODX have seen daily trading volumes exceed tens of millions of dollars on platforms like Gate, xStocks has moved from proof of concept to the stage of large-scale application. This innovative tool, which combines traditional stock market exposure with the liquidity of Crypto Assets, is gradually dismantling the century-old barriers that hinder the free flow of global capital.

In the future, when more users purchase Tesla stock tokens through MetaMask or mortgage Apple stocks on Solana to participate in lending, the boundary between Wall Street and Blockchain will completely dissolve—finance will no longer be a privilege of geography or institutions, but an indiscriminate flow of bits in the world of code.

HOODX2.65%

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