xStocks are blockchain-based, tokenized representations of traditional stocks. Each xStock is designed to track the price of a specific publicly traded equity (such as Apple or Tesla) and is typically issued on a crypto network so it can be held, transferred, and sometimes traded like a digital asset.
Why xStocks?:
- On-chain exposure to equities: They allow users to gain price exposure to traditional stocks without directly holding shares through a brokerage.
- 24/7 accessibility: Unlike traditional stock markets, xStocks can often be traded, depending on the platform.
- Composability in DeFi: xStocks can be used as collateral, liquidity, or building blocks within decentralized finance applications.
- Fractionalization: Users can buy small fractions of high-priced stocks, lowering the barrier to entry.
- Global access: They can provide stock market exposure to users in regions with limited access to traditional financial infrastructure.
In short, xStocks bridge traditional equity markets and blockchain ecosystems, combining stock price exposure with the flexibility of digital assets.