Last night, there was another big event where a company called xStocksFi that tokenizes US stocks emerged, successfully bringing together many partners within the industry, including CEX -- krakenfx and Bybit, as well as Infra on the Solana chain.

Now the top ten US stocks can be traded 24/7. I immediately bought some $NVDAx through the Backpack_CN wallet to experience it, and it was quite smooth.

In the future, buying US stocks may no longer require the hassle of opening an account in Hong Kong.

I have organized a few questions that I think everyone might be concerned about:

❓ Is the liquidity good?

When I bought $NVDAx, I found that the liquidity pool for this token on Solana is indeed not large; it might be because it just launched, with only 900,000 and just over 700 holders, which is still relatively shallow.

❓ How does trading when the US market is closed match with real US stocks?

The principle of xStocks is that their parent company, Backed Finance, bought a bunch of US stocks and held them in Jersey, relying on these real stock assets to issue tokens. Therefore, in the long run, there is not much deviation risk.

During market closure, the prices of tokens across the network follow the Chainlink oracle. If there is a significant deviation from the price of US stocks, arbitrageurs can profit by buying and selling tokens on the xStocks platform or other exchanges (like Kraken, Bybit), thereby pushing the price back to a reasonable range.

❓ Can it withstand black swan events?

The benefits of 24/7 trading are obvious, but the downside is that during a black swan event, US stocks may not have opened yet and the market could crash in advance.

I took a close look at xStock's mechanism; they will not be responsible for market volatility losses during trading. However, if the deviation is too severe, the platform may suspend trading of certain tokens (similar to a circuit breaker mechanism in traditional markets), waiting for the US market to open and stabilize the prices.

❓ Does it support dividend distribution?

Yes, it does, but dividends will not be distributed in cash; instead, more of the same type of token will be airdropped automatically after a snapshot.

❓ Do I need to pay taxes and KYC?

If you are trading on a DEX rather than a CEX, theoretically, you do not need to. However, it is not ruled out that your tax authority could be strong and find your wallet address through on-chain analysis, right? Haha.

Overall, if there is good on-chain liquidity in the future, users from the US/EU/Mainland might trade stock tokens for tax avoidance reasons.