Tokenisation Of Securities: DX.Exchange Makes It Possible To Trade US Stocks
DX.Exchange is a new digital exchange opening next week which will enable trading of US stocks such as Facebook, Apple, Tesla and others outside of the USA and 24/7.
It's a new exchange with offices in Estonia and Israel and will offer digital tokens for 10 Nasdaq listed companies. It's amazing how the growing momentum towards blockchain technology and cryptocurrency adoption is resulting in such amazing moves for the average investor.
According to the report in Bloomberg:
Each digital security is backed by one regular share and holders will be entitled to the same cash dividends, even though the companies themselves aren’t involved.
The exchange’s virtual stock offering will provide a test of investor appetite for products that seek to improve upon mainstream financial markets by using technology from the world of cryptocurrencies. DX will offer digital stocks, or tokens, based on actual shares bought and held by partner MPS MarketPlace Securities Ltd. The tokens will be based on the Ethereum network, with the amount corresponding to demand on the DX exchange.
The exchange is likely to expand operations to include NYSE, Tokyo and Hong Kong exchanges. It has full authorization to operate in the EU region and according to its CEO it doesn't require permission from the US as it doesn't operate there.
We are likely to see tokenisation of securities in the future as it will enable anyone to buy and sell stocks of their favourite companies from anywhere in the world.
I'm particularly pleased with the prospect of trading stocks such as Tesla and Apple.
MPS MarketPlace which is licensed by Cyprus’s financial regulator, will hold the stocks on behalf of the token owners and will keep them in a segregated account, Skowronski said. DX’s offering is compliant with Europe’s Mifid II directive.
Overall it's a very interesting piece of news that will change the way business is done over the course of the year. I'm going to sign up for an account later this year and test it out.
However, this doesn't come for free as there is a membership fee which isn't too bad given the possibilities this brings. Large traders outside of the US are likely to use such a service.
You can visit https://dx.exchange for more information and view the fee structure here.
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Thanks for new update.👍
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It's good news for crypto market.
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Wow,it a great piece of news.I think its the result of the expansion of blockchain technology,which makes the possibility of buying such stocks of any favorable companies from any parts of the world.
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I believe the membership fee suck when you think about it. It is best too simply charge typical trading fee.
That sounds really interesting, slowly but surely crypto overtaking the markets, I remember how it was when financial bodies tried to show it in a bad advertisement saying that crypto never will get strong enough and set its way through the financial world, but we see what happened within last few years. I believe everything in electronic and technolgy is developing rapidly and if we want to just on that train then we need to be informed and understand. Thank you for this news, something to read about :)
I wish something like this for india also exists so we can buy tokenized version of SBI shares ;)
This is very interesting as the possibilities are great! I am sure that it will probably require KYC/AML in some form and will also require its custodial partner to be audited to ensure they hold the investment securities. However, my only concern will be scalability as Ethereum is probably not the best network to scale on if ultimately successful at the moment. Promising project to keep an eye on!
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