The cryptocurrency industry is under constant growth and evolution is evident in the latest announcement by top player Dx.exchange – tokenized stock trading on blockchain. The exchange shall be powered by NASDAQ’s proprietary Matching Engine Technology and complies with EU regulatory framework.
Despite being a non-CFD crypto exchange, it will be one of the first to list real economy companies such as Apple Inc, Facebook Inc, Google, and Intel and their purchase using bitcoin or altcoin.
Disrupts conventional the trading paradigm
The biggest aftermath of Dx.exchange launch of new services is that the current tradition of fixed hours trading will be disrupted. On the crypto-based exchange, stock market trading can continue even after official business hours.
According to Daniel Skowronski, CEO of DX.exchange, Dx is
“opening an untapped market of millions of old and new traders around the globe cutting out the middleman.”
The exchange will be using Ethereum as well as ERC-20 to tokenize these listed stocks. The game-changer in this offer is that such tokenized stocks will have physical collateral in 1:1.
The new platform will operate on the same lines as USDT (Tether) the Stablecoin but will use stocks over that of default fiat which is offered by Stablecoin.
Tokenizing assets has been a logical progression and thereby tokenizing securities will open up the stock markets for trading round the clock.
The advantage of these crypto-based trading products is that they can be categorized as digital stocks and will create fractional ownership and will not require CFD leveraging. Additionally, they will safe collateral since digital stocks can be stored on trader wallets.
Thus tokenized securities shall spin real economy transactions into a digital spectrum and define the future path of evolution of these products. In fact, these need not be restricted to only new issues but to several thousands of the listed securities across the globe.
DX.exchange operates from Estonia as well as Israel. In the first phase, beginning January 7th, it will offer 10 Nasdaq-listed companies before scaling to NYSE, Tokyo as well as Hong Kong exchange based listings. The mode of operations is simplified and will not directly involve the companies itself. Every digital security shall be backed by one regular share, while holders shall be given the same cash dividends. DX will collaborate with MPS MarketPlace Securities Ltd. and will offer digital stocks as well as tokens on part with shares which are bought or held by MPS.