DX.Exchange, the exchange that allows institutions as well as individuals to purchase and trade cryptocurrencies with fiat, is launching a new crypto platform that will tokenize the stock market.
The FinTech Company based in Estonia, is the first non-CFD crypto exchange platform that offers stock trading that are tokenized on the blockchain network. Companies such as Facebook, Google, Apple and Intel will be listed on DX.Exchange. The launch is expected to take place on January 7th.
EU Regulated Stock Trading On the Ethereum Platform
In a press release held on Thursday this week, DX.Exchange confirmed it would open up options for users to trade digital stocks using tokens on the Ethereum blockchain platform through smart contracts. The launch is set to bridge the gap between real world stocks using its Crypto and tokenized digital stocks platform.
Daniel Skowronski, DX Exchange CEO says that;
“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,”
DX. Exchange also uses ERC-20 tokens to tokenize the stocks which according to the platform will be backed at a ratio of 1:1 by the physical assets. The company is providing the same service as stablecoins the only difference is that it is pegged on stocks instead of fiat money.
According to Daniel, the idea of tokenizing assets was raised by the crypto community over a year ago without any progress. He therefore thinks that the impact is very huge. He adds that;
“Tokenizing securities is the first true use case where crypto collides with the real world 24 hours a day, 7 days a week. With fractional ownership and no leverage like CFDs, these new digital stocks are a ‘more sound’ and safer investment that traders can take home in their wallet. This is the future of securities not just new issues but all the thousands of listed securities around the globe.’’
For the first time ever, securities can be purchased directly with popular cryptocurrencies. This is going to be profitable for both blockchain technology and traditional stock investments.
