Time to Buy Tokenised Stocks; Crypto Startup to Change Market

Time to Buy Tokenised Stocks; Crypto Startup to Change Market

It is going to be a new way to trade stocks while using cryptocurrencies and it will change everything. Estonian based crypto exchange DX.Exchange announced the launching of its new platform that will allow clients to use cryptos while buying stocks.

Regulated European exchange will offer investors to buy stocks directly in 1:1 basis with cryptocurrencies. So, crypto investors that are looking for ways to diversify portfolios will have the ability to enter other markets through the DX.Exchange platform.

“We saw a huge market opportunity in tokenising existing securities,” said Daniel Skowronski, DX.Exchange CEO. “We believe that this is the beginning of the traditional market’s merge with blockchain technology. This is going to open a whole new world of trading securities old and new alike.”

The company will open its new platform to the public on January 7 with tokenised stocks of the most popular companies in the stocks market, including Nasdaq listed companies such as Facebook, Tesla, or Google among others.

The platform, that works in full compliance with the European regulation MiFid, will use smart contracts to represent stocks. It will buy and hold the real stocks according to the demand on the platform. Tokens will be based on the Ethereum network.

The tokenised option will be provided by the Cyprus company MPS Marketplace Securities Ltd. Digital stocks will be backed 1:1 with the conventional equities and trading will be around the clock, 24/7.

“Henceforth, when they become a token holder, they own stocks or portions of the company’s stock, as the tokens are backed 1:1 to the real-world stocks. That makes them entitled to the same cash dividends that the stocks are worth,” COO Amedeo Moscato confirmed.

The technology behind DX.Exchange is based on Nasdaq’s Financial Information Exchange, the FIX, a neutral standard protocol that shares and match information between two parties. According to the press release, the platform will be able to provide APIs to allow integrations with market makers, liquidity providers, hedge funds, and algo traders.

DX.Exchange has plans to expand to other companies in the Nasdaq listing, but also the New York Stock Exchange, Tokyo and Hong Kong.

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