A Nasdaq-powered crypto exchange called DX.Exchange is opening its doors to investors next week. So, it’s just another new exchange, right? No. Not at all.
DX.Exchange
DX.Exchange is a European-regulated crypto exchange, that will allow investors to buy tokenized stock from ten technology companies that currently trade on the Nasdaq Stock Market. That’s pretty impressive.
The company is 100 people small. At the helm is chief executive officer Daniel Skowronski who stated that the exchange is “launching with 10 of the top stocks traded on Nasdaq first” with plans to add “more as we move forward.”
Backed Tokens
The company can offer tokenized exchanges because of its partnership with MPS (MarketPlace Securities). This firm will back each tokenized stock with an actual share of the purchased company. It is in this way that DX.Exchange is hoping to stand out from the rest.
ERC-20 Tokens
The Exchange will accept trading with ERC-20 tokens and will also have support for 40 crypto trading pairs. The service will be launched next week in Europe but won’t be available in the US until later in 2019.
Some of its starting offerings include Apple, Amazon, Facebook, and Netflix shares.
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Security
The DX.Exchange will use Nasdaq’s SMARTS technology to track suspicious trading activity including spoofing and market manipulation. Skowronski stated further:
“We built it on the back of Nasdaq’s SMARTS and its matching engine technology. We follow MIFID compliance. Our license in Estonia allows clients to exchange fiat to crypto and crypto to crypto. And we have a full-scale institutional custody solution.”
Some benefits of tokenized stocks include the ability to trade 24/7 and to buy only a part of a share and not the whole thing. Also, on DX.Exchange, customers will be able to change their crypto into fiat currency and then stock, directly on the platform. Some believe trading in this manner could also improve liquidity.
What say you? Are you a fan of tokenizing stocks?
Featured Image: Depositphotos/artjazz
