xStocks Introduction

What are tokenized stocks?

Stock tokenization converts the shares of a company into digital tokens on a blockchain. Each token represents a fraction or whole share of the underlying stock. The process involves identifying the asset, creating a legal framework for digital ownership, minting tokens via smart contracts and holding the real shares with a custodian to back each token one‑to‑one. Tokenized stocks can be bought and sold in fractions, making investing more inclusive, and they usually trade 24/7 instead of only during traditional market hours. Key benefits include:

Fractional ownership & accessibility — investors can purchase fractional shares of high‑price equities.
24/7 trading — unlike traditional stock markets, tokenized stocks trade around the clock.
Global reach & portability — blockchain infrastructure enables cross‑border transactions and allows users to hold tokens in their own wallets.
Transparency & efficiency — blockchain records transactions on an immutable ledger and smart contracts reduce settlement times.

With xStocks, household names such as Apple, Amazon, MicroStrategy and Microsoft options are available 24/7, allowing users to trade equities options using the same tools they use for crypto. xStocks aim to bridge traditional finance and crypto by offering tokens representing both blue‑chip companies and emerging crypto‑related firms.

Because tokenized stocks must comply with securities laws, the issuing entity holds the underlying shares in custody. The tokens are transferable and DeFi‑ready; the xStocks site notes that they can be used in lending protocols or DEXs and held in a user’s own wallet. The platform emphasises that xStocks are available 24/7, freely transferable, commission‑free on certain venues and accessible.

xStocks available on PowerTrade & PowerDEX

PowerTrade and its decentralized counterpart PowerDEX list a curated set of xStocks. The table below summarises the underlying assets, their tokenized tickers, available expiration cycles and some example strategies frequently used by option traders. The exchanges offer expiries ranging from same‑day options (0‑DTE) to three months.

Daily and short‑term options

PowerTrade recently added daily (0DTE) options on xStocks. These contracts expire the same day they are listed, giving traders the ability to speculate on intraday moves or to fine‑tune hedging without holding overnight risk. Multi‑day expiries (1–3 days), weekly and monthly contracts up to three months are also available, allowing both short‑term traders and longer‑term hedgers to choose appropriate horizons.

The screenshot below illustrates the CRCLx option chain on PowerTrade, showing multiple expiries including a 1‑Sep‑25 series (expiring in 2 days) and a range of strike prices with bid and ask quotes. The platform offers a single‑leg view for basic calls and puts and a multi‑leg mode for constructing complex strategies.

xStocks Options

Asset Name

Tokenized Name

Available Expiries

Popular Strategies

DeFi Development Corp

DFDVx

0DTE – 3 months

Earnings Straddle, Bull Call Spread

Nasdaq 100 Index

QQQx

0DTE – 3 months

Covered Call, Protective Put

S&P 500 Index

SPYx

0DTE – 3 months

Iron Condor, Collar

Single‑leg vs Multi‑leg options strategies

PowerTrade supports both single‑leg options and multi‑leg combinations. Understanding the difference helps traders select the appropriate tool for their objectives:

Single‑leg options: A single call or put. For example, buying a call on TSLAx expresses a bullish view with limited downside risk, while buying a put on QQQx offers downside protection if the index falls. Selling a call or put generates immediate premium income but obligates the seller to buy or sell the asset if exercised.
Multi‑leg (spread) strategies: Combine two or more options to refine risk/reward. Common spreads include:
Covered call: holding the underlying xStock while selling a call option; this generates income but caps upside. Covered calls are often used on indexes like QQQx or SPYx.
Protective put: buying a put option while owning the underlying; this provides downside insurance at the cost of the premium.
Vertical spreads: buying one option and selling another with a different strike (bull call spread, bear put spread). These reduce premium outlay and cap both risk and profit.
Calendar spreads: selling a near‑term option and buying a longer‑dated option with the same strike, seeking to profit from time‑decay differences.
Straddles & strangles: buying or selling both a call and a put to benefit from expected volatility (long straddle/strangle) or earn premium when anticipating low volatility (short straddle/strangle).
Collars and risk reversals: combining a protective put with a covered call to define a trading range or offset premium costs.

Each strategy has a specific payoff profile. On PowerTrade, the multi‑leg mode allows you to build these structures with a single order ticket. The platform’s strategy simulator can model potential profit/loss across expiries and strikes.

Contract size & block trading via RFQ

Options on PowerTrade are fractionalized to match the flexibility of tokenized stocks. Contract sizes can be as small as 0.01 of the standard contract, allowing traders to scale positions precisely. This fractional sizing matches the fractional ownership inherent in tokenized stocks. The platform also offers a Request for Quote (RFQ) system for large or bespoke trades: users can solicit quotes from market makers for block sizes and execute directly when liquidity in the order book is insufficient. RFQs are particularly useful for institutional users or anyone wishing to trade large contracts with minimal slippage.

Why include xStocks in your trading strategy?

24/7 access & global availability: Tokenized stocks trade around the clock. xStocks allow investors to access household names like Apple, Amazon and Microsoft 24/7 via platforms such as Bybit and Kraken. For traders in different time zones, continuous trading is a significant advantage.
Fractional exposure & capital efficiency: Because each token can represent fractions of a share, investors can gain exposure to high‑priced stocks with small amounts of capital. Options contracts are also fractionalized down to 0.01, enabling precise position sizing.
Diversification across crypto and traditional assets: xStocks bridge traditional finance and crypto. The platform offers a selection of tokens from emerging crypto firms (like MSTRx and CRCLx) alongside blue‑chip companies. Trading xStocks options can diversify a crypto portfolio toward mainstream equities without leaving the blockchain.
Income generation through option selling: Selling options (covered calls or cash‑secured puts) provides immediate premium income. For example, selling a bull put spread on TSLAx or a covered call on AMZNx can generate yield while defining risk. However, option selling carries obligations, so traders should understand assignment risk.
DeFi integration and liquidity: The xStocks website notes that these tokens are freely transferable and can be used in lending protocols or DEXs. By providing liquidity on decentralized exchanges or lending platforms, holders may earn additional yield.
No waiting for settlement and low fees: xStocks are designed to clear instantly; the site highlights that there is no waiting for trades to settle and that there are no commissions apart from the fees on screen.

Key takeaways about xStocks

xStocks represent a fusion of traditional equities and blockchain technology. By offering fractional, freely transferable tokens that can be traded 24/7, they give traders new ways to express views on major companies and indices without leaving the crypto ecosystem. PowerTrade and PowerDEX (where you can connect more than 400 wallets on Solana, ETH and Base directly, with no KYX) expand on this by providing options on xStocks with expiries ranging from daily to three months and contract sizes as low as 0.01. Single‑leg or multi‑leg strategies — along with RFQ block trades — allow users to tailor risk profiles and potentially generate income by selling options. As always, conduct thorough research and consider your risk tolerance before trading.