Stocks of Apple, Facebook and Tesla are set to be offered as tokenized securities on DX.Exchange from next week. And these’re fully regulatory compliant offerings.
Last year might not have gone well for the crypto space, but those who’re dead serious about the potential of this technology didn’t stop working on their projects. As a result, some very promising and exciting developments are taking place in the world of cryptocurrencies right now. Whether it’s Ethereum’s Constantinople hard fork or launch of Lite.im’s support for Bitcoin, a lot of good work has been happening in the crypto landscape. Now another such development is coming from the space of tokenized securities as a new platform called DX.Exchange is set to go live next week with shares of some of the world’s biggest corporations being available on it.
That’s right. As an exchange platform DX.Exchange had shot to fame for the first time back in June 2018. At that time it was being known for its innovative pricing mechanism, which included a subscription-based model rather than a fee-based model that is popular among major exchanges. Now it’s turning out that this exchange is also going to act as a platform for offering tokenized securities. And the first set of securities (i.e. stocks) to be listed on it are, like a match made in heaven, the stocks of tech companies (namely Apple, Facebook, and Tesla).
The stocks of these new listings will be pegged to tokens in a 1:1 ratio and their holders will be entitled to the same benefits (i.e. dividends) that are enjoyed by the regular holders of these stocks. However, the biggest benefit of these tokenized securities is that they’ll allow people to hold less than one stock, something that’s not possible with regular securities.
Interestingly, the companies behind these stocks are not directly involved in this development. Instead, DX.Exchange has partnered with MPS Marketplace Securities Ltd., a company that will purchase and hold the shares from market on behalf of DX.Exchange users. The team behind DX.Exchange says that their offerings are fully compliant with regulatory requirements, thanks to a license obtained by them from Estonian Financial Intelligence Unit (EFIU). That license allows them to operate legally within the European Union (EU) territory. Speaking about the offerings Daniel Skowroski, the CEO of DX.Exchange, said:
“We saw a huge market opportunity in tokenizing existing securities. We believe that this is the beginning of the traditional market’s merge with blockchain technology. This is going to open a whole new world of trading securities old and new alike.”
The offerings are set to go live on the platform next week. Now it will be interesting to see how well they’re received upon offering.