DX.Exchange, a European Union regulated cryptocurrency exchange based in Estonia, is set to offer tokenized securities on its platform, that’s set to launch on January 7 of this year. The platform will allow cryptocurrency users to invest in actual stocks, not contracts for difference (CFDs).
According to a press release shared with CryptoGlobe, the cryptocurrency exchange will offer its users securities in the form of tokenized stocks from major companies, including Google’s parent company Alphabet, Facebook, and Amazon. These are the, per the document, the first securities to be tokenized and traded as ERC-20 tokens on the Ethereum blockchain.
These tokens are reportedly backed 1:1 by real stocks issued by MPS MarketPlace Securities, a firm that DX.Exchange signed an exclusive agreement with to bring tokenized securities to its platform.
https://t.co/gavrewTi9F is ready to go live! The platform will launch on the 7th of January #exchangeyourway https://t.co/naAIacseUb
— DX.Exchange (@DXdotExchange) December 23, 2018
According to the document this will allow investors to buy and sell real stocks 24/7 in a “secure and compliant trading environment,” without having to wait for markets to open. This, in turn, means there’s more liquidity in the market.
Token holders will own shares of a specific company. The tokens representing these shares, which will be from “leading” public companies listed on the world’s biggest stock exchanges, will be issued via smart contracts. The release reads:
Digital stocks are backed 1:1 to real-world stocks traded on conventional stock exchanges. You purchase tokens for leading assets that you choose to invest in, such as Google, Amazon, etc. Therefore, when you are a token holder, you own shares of the company
The project is reportedly backed by NASDAQ’s matching engine, which is said to be used in over 70 markets. It allows high-frequency traders to use the platform at will. DX.Exchange is also backed by NFX, which has invested in and is advising the firm, and by Bloomberg, as DX is Bloomberg’s sponsor when it comes to cryptocurrencies.
It’s worth noting that NASDAQ, the world’s second-largest stock exchange, itself has been planning to launch bitcoin futures contracts, despite the significant drop cryptocurrencies have endured this year. This, according to sources familiar with the matter.