What Is Tesla Tokenized Stock (TSLAX) and How Does It Work?

There’s no such thing as a Tesla crypto coin. If you’ve heard people talking about "Tesla tokenized stock" or "TSLAX" as if it’s a new cryptocurrency like Bitcoin or Dogecoin, you’re not alone-but you’re also being misled. TSLAX isn’t a coin. It’s not even owned by Tesla. It’s a digital token that tracks the price of Tesla stock, created by a company called Backed Assets, and traded on crypto exchanges like Kraken, Binance, and Gate.io. It’s a bridge between Wall Street and the blockchain-but it doesn’t give you any of the rights you’d get from owning actual Tesla shares.

What Exactly Is TSLAX?

TSLAX stands for Tesla xStock, a tokenized version of Tesla, Inc. stock (TSLA). Every TSLAX token is backed 1:1 by a real share of Tesla held in custody by regulated financial institutions. When Tesla’s stock price goes up, TSLAX goes up. When it drops, TSLAX drops. That’s it. There’s no mining, no blockchain-based utility, and no company behind TSLAX other than Backed Assets, which issues the tokens and manages the underlying shares.

Unlike Bitcoin or Ethereum, TSLAX doesn’t have its own network. It runs on existing blockchains: Ethereum (as an ERC-20 token) and Solana (as an SPL token). That means you can store it in any wallet that supports those standards-MetaMask, Phantom, or even directly on Kraken or Gate.io. But you’re not holding Tesla. You’re holding a digital representation of its price.

Who Can Buy TSLAX?

If you’re in the United States, you can’t buy TSLAX. Period. The SEC hasn’t approved tokenized stocks for U.S. retail investors, so platforms like Kraken and Binance block access to TSLAX for users with U.S. IP addresses or registered addresses. That’s not a glitch-it’s a legal restriction.

But if you’re in Europe, Asia, Canada, Australia, or other approved regions, you can buy TSLAX with crypto, stablecoins like USDT or USDC, or even with fiat through credit card purchases on supported exchanges. Kraken lets you buy as little as $1 worth of TSLAX, making it one of the most accessible ways for non-U.S. investors to get exposure to Tesla without opening a U.S. brokerage account.

How Is TSLAX Different From Real Tesla Stock?

This is the most important thing to understand: TSLAX is not Tesla stock. You don’t own a piece of the company. You don’t get voting rights at shareholder meetings. You don’t receive dividends-even when Tesla pays them. You’re not listed as a shareholder in Tesla’s books. You’re holding a financial derivative, not an equity.

Think of it like a futures contract or an ETF that tracks Tesla’s price-but it’s built on a blockchain and traded 24/7. Traditional stock markets close on weekends and holidays. TSLAX trades on most platforms every day, every hour. That’s useful if you want to react to news overnight, like a surprise earnings report or Elon Musk’s latest tweet.

But here’s the catch: if Tesla gets sued, fires its CEO, or faces a supply chain crisis, TSLAX will move with it. But if Tesla changes its dividend policy or votes on a new board member, you won’t know about it until your token price reacts.

Why Do People Trade TSLAX?

For crypto-native investors, TSLAX solves a real problem: how to invest in blue-chip stocks without dealing with U.S. brokerage accounts, wire transfers, or tax forms. You don’t need to fill out W-8BEN forms or deal with IRS reporting. You just log into your crypto exchange, buy TSLAX with ETH or SOL, and you’re done.

It’s also popular in DeFi. Some users use TSLAX as collateral to borrow other crypto assets on lending platforms like Aave or Compound. Others stake it in yield farms to earn passive income-something you can’t do with actual Tesla stock. That’s a major appeal: combining the stability of a $700 billion company with the flexibility of DeFi.

Gate.io’s launch of 10x leverage trading on TSLAX in July 2025 shows how the product is evolving. Traders are now using it for short-term speculation, not just long-term exposure. That’s risky-leveraged trading can wipe out your account fast-but it’s also why TSLAX is gaining traction among active crypto traders.

Where Can You Buy and Trade TSLAX?

TSLAX is listed on three major exchanges:

• Kraken: Offers fractional purchases starting at $1, supports USD, BTC, and stablecoins. Trades 24/5, with weekend trading "in development."
• Gate.io: Allows trading with USDT, and since July 2025, offers perpetual futures contracts with up to 10x leverage.
• Binance: Lists TSLAX for spot trading, with support for multiple deposit methods including credit cards and Web3 wallets.

Each exchange has its own rules. Kraken requires identity verification for non-U.S. users. Gate.io lets you trade derivatives. Binance gives you the widest range of payment options. But none of them give you ownership of Tesla shares.

What Are the Risks?

There are three big risks with TSLAX:

1. No shareholder rights: You’re not an owner. You’re a trader.
2. Regulatory risk: If the SEC cracks down on tokenized securities globally, TSLAX could be delisted or frozen. Backed Assets complies with European rules-but not U.S. ones. That’s a shaky foundation.
3. Custody risk: Your token is backed by real Tesla shares, but those shares are held by third-party custodians. If those custodians fail or get hacked, your token might still trade-but the underlying asset could be at risk. Backed Assets doesn’t publicly detail its custody setup, which is a red flag for cautious investors.

There’s also a redemption fee. If you want to turn your TSLAX back into cash or actual Tesla shares, Backed Assets charges a fee. It’s not huge-but it’s another cost you don’t pay when you hold Tesla stock directly.

How Does TSLAX Compare to Other Tokenized Stocks?

Backed Assets doesn’t just offer TSLAX. They also issue:

• GOOGLX (Google/Alphabet)
• AMZNX (Amazon)
• MSTRX (MicroStrategy)

All work the same way: 1:1 backing, blockchain-based, no ownership rights. GOOGLX and AMZNX are even more popular than TSLAX on some exchanges because they’re less volatile. Tesla’s stock swings wildly. Google’s doesn’t. So if you want steady exposure to tech giants without the rollercoaster, GOOGLX might be a better fit.

There are other platforms offering similar products-like Mirror Protocol on Terra (though it’s been defunct since 2022), or traditional brokerages like Robinhood offering fractional shares. But none of them offer 24/7 trading or DeFi integration like TSLAX.

Is TSLAX the Future of Investing?

It’s too early to say. But tokenized assets are growing fast. CoinGecko reports the total value locked in real-world asset (RWA) tokenization grew over 1,000% between late 2022 and late 2023. Boston Consulting Group predicts the entire market could hit $16 trillion by 2030. TSLAX is a small part of that-but it’s one of the most visible examples.

It’s not for everyone. If you want to own a piece of Tesla, vote at shareholder meetings, and get dividends, buy TSLA stock directly. If you want to trade Tesla’s price around the clock, use crypto, and layer on DeFi yields, then TSLAX makes sense.

It’s not magic. It’s not a new asset class. It’s just a smarter way to trade something you already know.

Should You Buy TSLAX?

Ask yourself these questions:

• Are you outside the U.S.? If not, skip it.
• Do you understand that you’re not owning Tesla? If you think you are, don’t buy it.
• Are you comfortable with crypto exchanges and wallets? If you’re new to crypto, start with Bitcoin or Ethereum first.
• Do you want 24/7 trading and DeFi access? If yes, TSLAX could be useful.
• Are you okay with paying fees to cash out? If not, consider traditional investing.

If you answered yes to the last two and no to the first two, then TSLAX might be worth a small test investment-say, $10 or $20. Don’t go all in. Treat it like a speculative trade, not a long-term holding.