This week has witnessed the launch of a new Europe-based exchange called DX Exchange.
The exchange also comes with its trading platform. Unlike other traditional crypto exchanges, DX Exchange lets you invest in some of the world’s biggest companies such as Google, Apple, Facebook, and Tesla.
In order to do so, one must purchase a security token. Each of the ERC20 tokens is then backed by one share of the company the trader wants to invest in.
Thus, by investing in a security token you actually start your ownership over real-world assets, which entitles you to dividends as well.
“The crypto community has been talking about security tokens for well over a year now without much progress, so we think the impact will be huge. By tokenizing stocks of some of the biggest publicly-traded companies like Google, Amazon, Facebook and more, we are opening an untapped market of millions of old and new traders around the globe cutting out the middleman”, said Amedeo Moscato, DX’s chief operating officer.
Currently, the exchange lists NASDAQ’s ten biggest company by market capitalization. However, their plans also include other companies listed on NYSE, Hong Kong, Tokyo Exchange etc.
DX Exchange is the first EU regulated security tokens exchange, which also offers other products such as crypto to crypto trading, fiat to crypto trading etc. Although some analysts are questioning the legality of this model, DX insists their platform is regulated under the European Union’s “MiFID II directive”.
DX platform is built on the basis of Nasdaq’s Matching Engine technology.
The emergence of the DX Exchange is another evidence of the increased presence of STOs in the crypto ecosystem. The so-called “tokenization” – transforming real-world assets to digital tokens – is slowly conquering the crypto markets and replacing the underperforming ICOs.