What Is xStocks?
Launched by xStocks Labs, xStocks is a pioneering protocol that brings U.S. stock ownership on-chain by converting shares of major American companies into fully backed SPL tokens on the Solana blockchain. xStocks Labs was founded by a team of former Wall Street veterans and blockchain pioneers who saw an opportunity to marry traditional equities with decentralized technology. xStocks are powered by Backed. Founded in 2021, Backed is one of the longest-standing real-world-asset (RWA) issuers in the industry, providing institutional-grade custody and regulatory compliance for every tokenized share.
Real-world assets (RWA) refer to physical or financial assets - such as stocks, bonds, or real estate — that are represented and traded on-chain, enabling blockchain users to gain direct exposure to traditional markets.
How xStocks Brought the U.S. Stock Market On-Chain
xStocks uses a two-step tokenization process: licensed custodians hold the underlying shares in segregated, regulated accounts while minting corresponding SPL tokens. Custom smart contracts automate token issuance, peer-to-peer transfers, and settlement 24/7, integrating on-chain oracles for live market data and corporate-action updates. This architecture ensures that every transaction conforms to U.S. securities regulations and benefits from the blockchain’s high throughput and minimal transaction costs.
Which U.S. Companies Can I Invest In With xStocks?
The list of supported stocks is extensive, including Tesla, Netflix, Amazon, and Nvidia. In fact, the majority of S&P 500 companies are already available or will be available soon. This roster is continually expanding—please check your wallet for the most up-to-date selection of tokenized equities.
xStocks provides extensive on-chain access to U.S. stocks - Source: xStocks
RWA U.S. Stocks With the Power of DeFi: The Ultimate Match
Let’s explore the unique and boundless opportunities that the emergence of U.S. stocks on the blockchain offers and how this integrates into the DeFi ecosystem.
How Is xStocks Better Than Traditional U.S. Stock Investing?
xStocks doesn’t just offer powerful advantages; it fundamentally transforms how you invest in the U.S. stock market. Key benefits include:
- 24/7/365 Access – The market is always open for you, allowing you to buy and sell US stocks at any time, day or night.
- Low Fees – In many cases, fees are non-existent, and when they apply, they are significantly lower than those charged by conventional brokers.
- 100% Ownership – You retain full control over your assets, with the freedom to transfer or sell them whenever and wherever you choose.
- Easy Onboarding – There’s no lengthy registration process: simply install a Solana wallet and back up your seed phrase.
How xStocks Uses DeFi Tools
Since xStocks tokens are blockchain-native assets - just like USDT or USDC - all modern DeFi applications apply. Specifically:
- xStocks Lending – US stock tokens can be deposited or borrowed against collateral in Bitcoin or other cryptocurrencies.
- Margin Trading – US stock tokens enable leveraged long or short positions, giving you access to advanced trading strategies.
- Instant Swaps – You can swap US stock tokens for other cryptocurrencies in seconds, with minimal transaction costs.
What’s the Difference Between xStocks and bTokens?
Due to legal considerations and regulations, various tokens exist that represent tokenized shares of U.S. companies in one way or another — here are two prominent examples:
-
xStocks
- Assets: U.S. stocks and ETFs only
- Blockchain: Solana (SPL tokens)
- DeFi integrations: Native support for lending, liquidity pools, margin trading
- Token mechanics: No rebasing; each token is 1:1 backed by actual shares
-
bTokens
- Assets: Stocks, bonds, and ETFs
- Blockchain: Multi-chain (ERC-20 on Ethereum, Polygon, etc.)
- DeFi integrations: Wrapped versions (wbTokens) enable lending, LPs, derivatives
- Token mechanics: May rebase to reflect corporate actions (dividends, splits)
How to Buy a U.S. Stock Market Token On-Chain?
It’s simple - just three basic steps:
Get any U.S. company stock on-chain by simply swapping SOL or other tokens in your wallet. Source: Gem Wallet.
- Install a Solana SPL/ERC-20 compatible wallet.
- Fund your wallet or purchase base tokens (e.g., SOL, ETH) with a credit card.
- Swap your base tokens inside the wallet for the desired xStocks (e.g., TESLAx).
And that’s it! You’ll now hold tokenized shares of Tesla - or any other company you choose in your crypto wallet. From there, you can freely transfer and swap these tokens without any restrictions.