Dx.Exchange To Launch Crypto Trading Platform That Uses Tokenized Stocks
A new crypto platform that tokenizes the stock market is being launched by Dx.exchange. Fintech, which is based in Estonia, is the first non-CFD crypto exchange to offer stock trading token on the blockchain.
Publicly listed companies such as Google, Facebook, Intel and Apple are planned to be listed on DX.exchange. This is the first time that securities can be directly purchased using major cryptocurrencies such as Bitcoin.
The exchange is scheduled to start on 7 January. As Bloomberg reports, stocks can be traded on the cryptocurrency exchange even after trading has ended in the stock markets.
According to the press release of DX.exchange, they are an EU-regulated exchange powered by Nasdaq’a Matching Engine Technology:
“DX is launching a new Nasdaq tech-powered crypto exchange on January 7th, bridging the gap between cryptocurrencies and real world stocks with its Crypto & tokenized digital stocks platform. The first exchange to offer tokenized shares of publicly traded companies like Amazon, Facebook, Intel etc. which are not Contracts for Difference (CFDs), DX will empower traders to buy some of the world’s most valuable stocks in the form of digital tokens alongside cryptocurrencies like Bitcoin and Ethereum—a feat that has until now been out of reach.”
Daniel Skowronski, DX Exchange CEO said “By tokenizing stocks of some of the biggest publicly traded companies like Google, Amazon, Facebook and more, DX is opening an untapped market of millions of old and new traders around the globe cutting out the middleman.”
The stocks will be tokenized by Dx.exchange using Ethereum and ERC-20, with 1:1 backing by the physical assets. The company says that it provides the same service as Stablecoins like USDT (Tether), using stocks only as a peg instead of fiat money. Daniel Skowronski continues in the press release:
“The crypto community has been talking about the tokenization of assets for over a year without much progress, so we believe that the impact will be enormous. Tokenizing securities is the first real use case in which crypto collides 24 hours a day, 7 days a week with the real world. With fractional ownership and no leverage like CFDs, these new digital stocks are a safer and more sound investment that traders can take home. This is the future of securities, not only of new issues, but of the thousands of securities listed worldwide.”
— DX.Exchange (@DXdotExchange) December 23, 2018