What is Tesla tokenized stock (xStock) (TSLAX)?

Deep Dive

1. Purpose & Value Proposition

TSLAx bridges traditional equity markets and crypto by tokenizing Tesla shares. Each token is fully backed by the underlying stock, allowing users outside the U.S., EU, and other restricted jurisdictions to gain price exposure without direct stock ownership. Unlike traditional brokers, TSLAx trades 24/7 on platforms like Bitrue and Gate, settles transactions on-chain, and supports fractional ownership (Bitrue).

2. Technology & Architecture

TSLAx operates on Ethereum (ERC-20) and Solana (SPL), leveraging multi-chain interoperability for cross-platform trading. Backed Finance, the issuer, uses regulated custodians to hold Tesla shares, ensuring 1:1 collateralization. Chainlink Data Streams provide real-time price feeds and verify corporate actions, maintaining parity with Tesla’s Nasdaq price (Kamino Finance).

3. Ecosystem Fundamentals

TSLAx integrates into DeFi ecosystems, enabling use as collateral for loans or liquidity provision. For example, Kamino Finance allows borrowing against TSLAx holdings, while perpetual futures trading on Gate offers leveraged exposure. However, tokens grant no dividends, voting rights, or legal ownership—purely price-tracking instruments (Gate).

Conclusion

TSLAx reimagines equity access by merging Tesla’s market presence with blockchain’s global reach and programmability. Its success hinges on balancing regulatory compliance with DeFi innovation. Will tokenized stocks become a staple in cross-chain finance, or remain niche instruments for specific investor cohorts?