To understand the differences between Gate’s stock tokens and those offered by Ondo and xStocks, we first need to clarify the concept of "stock tokens."
Stock tokens (Tokenized Stocks) are digital tokens created by mapping real stocks listed on traditional exchanges onto the blockchain. Each stock token is typically backed 1:1 by actual shares held in custody by a trusted institution. This means stock tokens are not just price-tracking derivatives or contracts for difference—they are on-chain certificates backed by real assets.
Stock tokens differ structurally from traditional stocks in several key ways. Traditional stocks are held in brokerage accounts, rely on exchanges and central clearing systems for trading and settlement, and typically use a T+1 settlement cycle. In contrast, stock tokens are held in crypto wallets, operate on blockchain networks, and offer T+0 instant settlement. They also support 24/7 trading, fractional ownership starting from as little as 1 USDT, and micro-share trading, significantly lowering the barrier to accessing high-quality global assets.
As of July 2026, the total distribution of tokenized stocks has exceeded $2.1 billion, marking a rapid transition from RWA experimentation to mainstream adoption. In this fast-growing market, Gate gStocks, Ondo, and xStocks are the three most prominent stock token products. Each focuses on different aspects of underlying architecture, trading mechanisms, financial features, and use cases. Understanding these distinctions is essential for investors making informed choices.
Gate gStocks: An All-in-One Tokenized Securities Ecosystem
gStocks is Gate’s tokenized securities product, mapping real stocks listed on traditional exchanges onto the blockchain. Its core mechanism rests on three pillars: 1:1 real asset backing, 24/7 continuous trading, and a low entry threshold starting at just 1 USDT.
By July 2026, the Gate gStocks section had launched over 70 tokenized stock assets, covering sectors like tech giants, semiconductor and AI chip leaders, aerospace and defense, consumer goods, healthcare, and key ETFs. The platform spans US, Hong Kong, and South Korean stock markets.
In July 2026, gStocks underwent a major upgrade, rolling out five comprehensive financial features:
Staking & Borrowing: Users can borrow USDT by collateralizing their gStocks holdings, unlocking liquidity without selling their positions.
Earn Program: Idle gStocks assets can be allocated to the Earn program, generating returns while waiting for market opportunities.
Unified Account: gStocks is now fully integrated into Gate’s unified account system, allowing tokenized stocks to be used directly as trading margin—eliminating the need for frequent transfers between accounts.
Leverage Trading: Both isolated and cross-margin leverage modes are supported, enabling long and short strategies so users can flexibly adjust to market conditions.
Stock Dividends: For eligible stock assets, the system automatically calculates and distributes dividend income—users receive dividends without any extra steps.
This upgrade centers on making stock assets tradable, liquid, and yield-generating. As a result, gStocks has evolved from a simple trading tool into a comprehensive product that combines trading, wealth management, and asset management.
Ondo: Tokenized Stocks from an On-Chain Financial Asset Platform
Ondo Finance, founded in 2022, initially focused on DeFi structured yield products before pivoting in 2023 to tokenized US Treasuries, partnering with institutions like BlackRock to offer on-chain Treasury investments. In September 2025, Ondo launched its tokenized stock product, Ondo Global Markets, on Ethereum mainnet.
Ondo’s tokenized stock solution uses an "Inherited Liquidity" model. Its core mechanism is "instant atomic minting and burning"—real-time minting and redemption, combined with arbitrage activity, keeps the token price closely aligned with the underlying stock. This design allows tokens to circulate flexibly on-chain while closely tracking the target stock price.
Ondo is currently the largest issuer in the tokenized stock market. As of July 2026, the total value of Ondo’s on-chain stocks was about $955 million. The platform supports over 260 tokenized assets, making it the most comprehensive among the four major products.
In July 2026, Ondo Perps introduced tokenized stock collateral functionality, initially supporting SPYon and QQQon as collateral. This feature is part of Ondo’s "productive capital" strategy, aimed at improving capital efficiency for tokenized stocks and bringing perpetual contract market liquidity and efficiency closer to that of traditional derivatives. Ondo Perps supports up to 20x leverage, offers 24/7 trading, and has surpassed $3.8 billion in trading volume.
Additionally, Ondo recently partnered with Japan’s SBI Group to tokenize Japanese stocks on Ondo Global Markets, enabling 24/7 minting, redemption, and voting rights functionality.
xStocks: Infrastructure-Grade On-Chain Stock Tokens
xStocks, launched by Switzerland’s Backed Finance in May 2025, introduced over 60 tokenized stocks and ETFs on the Solana network. In December 2025, regulated crypto exchange Kraken announced its acquisition of Backed Finance, deeply integrating xStocks into its ecosystem. Today, xStocks boasts more than 500 US assets and over 200,000 holders.
xStocks features an "inventory model"—the issuer pre-purchases and holds the underlying stocks, then mints tokens on-chain at a 1:1 ratio. Each xStocks token is fully backed by the corresponding listed stock, with shares held in regulated, independent custodians.
Within just eight months of launch, xStocks reached a cumulative trading volume of $25 billion. With around 162,000 holders and 1.8 million trades, xStocks leads in both user base and trading activity. Distributed widely across Solana and other supported networks, users can access tokenized versions of major US stocks and ETFs via crypto-native wallets and trading venues.
In July 2026, Kraken’s parent company Payward Partners partnered with GTN to further expand xStocks’ global reach. xStocks now trades freely on over 100 exchanges and supports 24/7 trading.
Core Differences Among the Three Leading Stock Token Products
Each stock token solution targets distinct user needs and scenarios.
Asset Backing Mechanism: All three use 1:1 real asset backing, but with different approaches: gStocks relies on Gate’s centralized order book and custody reserves; Ondo uses an on-chain, real-time minting and redemption mechanism; xStocks employs an inventory model where the issuer pre-holds the underlying stocks.
Depth of Financial Features: gStocks integrates five major financial features, covering the full spectrum from trading to wealth and asset management. Ondo’s strength lies in allowing tokenized stocks to serve as perpetual contract collateral, supporting up to 20x leverage. xStocks stands out for its broad holder base and exchange coverage.
Asset Coverage: Ondo supports over 260 tokenized assets, offering the widest selection. xStocks covers over 500 US assets. gStocks has launched more than 70 assets, spanning several key sectors.
Trading Hours and Entry Thresholds: All three support 24/7 trading. gStocks offers the lowest entry point, allowing participation from just 1 USDT.
Compliance and Custody: xStocks is issued by Switzerland’s Backed Finance under Swiss DLT law, with underlying stocks held via a Liechtenstein SPV. Ondo token holder rights are governed by Swiss law. gStocks leverages the Gate platform, with each token fully backed by actual stocks held in reserve.
Conclusion
Stock tokens are redefining how investors access traditional assets. Gate gStocks, Ondo, and xStocks each represent distinctive approaches in this evolving space.
Gate gStocks’ core advantage lies in its integrated financial ecosystem. With features like staking & borrowing, the Earn program, unified accounts, leveraged trading, and automated dividends, gStocks transforms tokenized securities from mere trading tools into comprehensive financial products that generate yield, unlock liquidity, and enable asset management. For users seeking an end-to-end solution on the Gate platform—from trading to wealth management—gStocks offers the most complete package.
Ondo’s strength is in the composability and institutional scale of its on-chain assets. As the largest issuer by market share, Ondo provides the broadest asset coverage and deep institutional liquidity. Its ability to use tokenized stocks as perpetual contract collateral delivers unique value for on-chain traders focused on capital efficiency.
xStocks excels in its wide holder base and exchange ecosystem coverage. With over 200,000 holders and 500 US assets, it stands as one of the most robust infrastructure products in the stock token space. Kraken’s deep integration and a distribution network spanning over 100 exchanges further enhance its reach.
For investors, choosing the right stock token product depends on specific investment goals, trading habits, and asset allocation needs. Understanding the differences in asset backing, financial features, asset coverage, and use cases is the starting point for making informed decisions.
Frequently Asked Questions (FAQ)
Q1: How do Gate gStocks differ from traditional stocks?
A: gStocks are Gate’s tokenized securities, each backed 1:1 by real stocks held in custody. Unlike traditional stocks, gStocks support 24/7 trading, fractional ownership starting at 1 USDT, and instant T+0 settlement. However, holding gStocks usually does not confer shareholder rights such as voting in listed companies.
Q2: How do Ondo and xStocks differ in their asset backing mechanisms?
A: Both use 1:1 real asset backing, but the methods differ. Ondo uses an "instant atomic mint and burn" mechanism, maintaining token prices close to the underlying stock through real-time minting and redemption. xStocks uses an "inventory model," where the issuer pre-purchases and holds the underlying stocks, then mints tokens on-chain at a 1:1 ratio.
Q3: Which stock tokens can be traded on the Gate platform?
A: Gate offers a variety of stock token products. In addition to its own gStocks tokenized securities, Gate also provides trading services for Ondo and xStocks tokenized stocks. Users can access all three leading stock token solutions in one place on Gate.
Q4: What are the five major financial features of gStocks?
A: In July 2026, gStocks rolled out five core financial features: staking & borrowing (borrow USDT by collateralizing stock assets), Earn program (automatic yield on idle holdings), unified account (use stocks as trading margin), leveraged trading (support for both long and short strategies), and stock dividends (automatic distribution of dividend income).
Q5: What risks are involved in investing in stock tokens?
A: Investing in stock tokens involves several risks. On the price side, although tokens are pegged to underlying stocks, extreme market conditions may cause temporary depegging. Liquidity can be limited for certain assets. From a compliance perspective, regulatory frameworks for tokenized securities are still evolving across jurisdictions. Investors should fully understand the product structure and associated risks before making decisions.
