xStocks Beginner's Guide: What are tokenized stocks? How to buy COINX on Gate

In May 2025, an innovative financial product called xStocks quietly launched. In just over two months, its daily volume exceeded 2 billion dollars, with more than 25,500 users holding it.

This product launched by the Swiss compliant asset tokenization platform Backed Finance is reshaping the global stock investment approach through blockchain technology, allowing users to invest in star companies like Tesla, Apple, and Coinbase without the need for a traditional brokerage account.

##What is xStocks?

xStocks is a compliant physical asset tokenization project, which core is to convert globally traded stocks into blockchain-tradable crypto tokens in a 1:1 collateralized form. Each token represents real existing company stocks and is issued with full asset collateral:

• 1:1 asset collateral: For every token issued, there is a corresponding amount of real stocks held by a regulated third-party custodian.
• Around-the-clock trading: Breaks the traditional stock market trading time limits, supports 24/7 trading
• Global Access: No need for local bank accounts or complicated compliance processes, users worldwide can participate.
• Multi-chain support: Originally based on the Solana public chain, now extended to ecosystems like BNB Chain.

This model essentially bridges the gap between traditional stock markets and the crypto ecosystem, allowing users to trade stock assets just like buying and selling cryptocurrencies.

##What is COINX?

COINX is the Coinbase (COIN) stock token in the xStocks series, representing an equity exposure to the leading global cryptocurrency exchange Coinbase.

Unlike directly holding Coinbase stock, COINX holders receive a "synthetic exposure" linked to the performance of COIN stock prices – enjoying the benefits of price fluctuations without owning actual stock voting rights and other privileges.

As of August 2025, xStocks has a total asset management scale of approximately $43.6 million, covering popular company stock tokens such as Tesla (TSLAx), Apple (AAPLx), and Coinbase (COINx). Among them, COINX, as a representative of equity for benchmark enterprises in the cryptocurrency industry, has become one of the first popular targets to be listed.

##How to Trade COINX on Gate (Step-by-Step Guide)

The globally leading cryptocurrency trading platform Gate launched the xStocks zone on July 3, 2025, becoming the world's first trading platform to support a tokenized stock contract market. Below is the complete process for purchasing COINX on Gate:

Step 1: Registration and Account Preparation

1. Visit Gate.com to register an account and complete identity verification.
2. Ensure that there is enough USDT in the account (all xStocks trading pairs are settled in USDT)

Step 2: Fund Deposit

1. After logging into your account, go to 【Assets】 - 【Spot】
2. Search for "COINX" and click on [Deposit]
3. Copy the SOL chain deposit address (xStocks token is issued based on Solana)
4. Transfer USDT from an external wallet or directly recharge COINX

Step 3: Start Trading

1. Enter the [Trading] page
2. Choose the 【Spot】 or 【Contract】 trading mode
3. Enter "COINX/USDT" in the trading pair search box.
4. Select the trading type based on your needs:

• Spot trading: Directly buy and sell COINX tokens
• Contract Trading: Supports 1-10x leverage for long/short positions

5. Place orders using market orders (immediate execution) or limit orders (specified price execution)

Professional Tip: Advanced traders can enter Gate's 【Alpha Zone】 to enjoy better liquidity and slippage control, particularly suitable for large transactions.

##Core Advantages of xStocks

Trading tokenized stocks such as COINX on platforms like Gate has multiple advantages:

• Borderless Investment: Users from regions such as Africa and Asia can invest in US-listed companies without the need to open a stock account. VALR Exchange has thus become the first platform in Africa to offer stock trading.
• Fragmented investment: No need to purchase whole shares, small amounts of capital can participate, significantly lowering the investment threshold.
• Flexible trading strategies: Supports leveraged long/short positions, breaking the traditional stock market's limitation of only being able to "buy up."
• On-chain free circulation: Tokens can be freely transferred to personal wallets to participate in DeFi staking, lending, and other on-chain applications (in stark contrast to Robinhood's closed tokens)
• Low cost and high efficiency: Based on high-performance blockchains like Solana, transactions are fast and Gas fees are low.

##Challenges and Considerations

Despite the broad prospects, xStocks still faces some challenges:

• Limited liquidity: Except for popular assets like TSLAx, most tokenized stocks have limited volume and face insufficient liquidity issues.
• Regulatory uncertainty: Currently, xStocks is not open to US users due to the lack of a clear regulatory framework in the United States. In Europe, Kraken offers this service through its compliant entity in Cyprus and has obtained a CySEC license.
• Legal Attribute Ambiguity: Regulatory agencies have not reached a consensus on the classification of tokenized stocks (securities, debt instruments, or digital assets), leading to compliance complexities.
• No shareholder rights: Holding tokens like COINX does not grant actual voting rights or other corporate governance rights.

##Future Prospects

With the support of major exchanges like Gate, xStocks is rapidly expanding:

1. Product Innovation: Developing from spot trading to perpetual contracts and other derivatives to meet the high-risk appetite of cryptocurrency users.
2. Asset diversification: Extending from publicly listed company stocks to private equity tokenization may reshape the circulation model of early-stage enterprise equity.
3. Global Expansion: After VALR enters the African market, more regional exchanges are expected to join the xStocks alliance.
4. Ecological Integration: Protocols like Kamino Lend have started accepting xStocks as collateral, enhancing the utility of the tokens.

The tokenized stock market is still in its early stages, but its growth momentum cannot be ignored. With daily trading volume exceeding $2 billion, xStocks represents not only technological innovation but also an important attempt at global financial democratization.

Whether you are a native cryptocurrency user or a traditional stock investor seeking new channels, xStocks offers a unique opportunity to participate in the future of the global financial market with a wallet instead of a brokerage account, using USDT instead of USD, and without borders.