Digital Assets AG Launches Tokenized Stocks on Solana

Digital Assets AG Launches Tokenized Stocks on Solana

Babafemi Adebajo By Babafemi Adebajo Updated 2 min read
Digital Assets AG Launches Tokenized Stocks on Solana
Photo: Depositphotos

Founder and CEO of FTX Sam Bankman-Fried is convinced that the stock tokens by DAAG have the potential to cause a shift in market structure.

Switzerland-based Digital Assets has launched its tokenized stocks on the Solana blockchain. These tokens will be available only on the Free Traders Exchange (FTX) at the beginning.

According to DAAG executive, Brandon Williams, the move to Solana will make for more efficient and effective transactions. “It will create a more efficient environment for trading and utilization of tokenized stock,” he stated. The firm notes that a migration of the general traditional finance and capital market to blockchain technology is imminent and Solana is easily the chosen destination for any firm.

Solana is a blockchain network with an open infrastructure that allows any global user access to its network. It leverages Proof of History to achieve scalability, is known for its low cost, super-fast transaction speed and cross-compatibility. The firm recently raised $314 million by selling private tokens. This was done to raise support to accommodate its growing ecosystem and its vision to onboard a billion users.

The launch of the tokenized stocks by Digital Assets AG will allow users of FTX an in-route into the regular equity markets. Per the announcement, all users who have completed their Know Your Customer verification at the time of the initial offering will be able to access 55 free-floating stocks 24/7/365. These will include stocks for Facebook, Google, Netflix, Nvidia, and Tesla to mention a few.

These free-floating stocks are securities approved for trading on tokenized platforms. It excludes locked-in shares by company executives. Per regulation, the tokenized stocks of DAAG are only available in specific locations; with the stock tokens validated for the European Economic Area (EAA) by the endorsement of Liechtenstein’s Financial Market Authority. This means only users in the EAA will be able to make transactions with the assets.

Binance became the first major exchange to offer tokenized stocks after it partnered with DAAG in April. However, there have been regulatory concerns by users. With DAAG and FTX now in the league also, and with regulatory backing sorted, FTX users will be able to transfer assets between markets without restrictions, with near-instantaneous settlement and no counterparty risks.

Founder and CEO of FTX Sam Bankman-Fried is convinced that the stock tokens by DAAG have the potential to cause a shift in market structure.

Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.

FTX (FTT) News, Solana (SOL) News, Blockchain News, Cryptocurrency News, Market News, News, Stocks
Babafemi Adebajo

An experienced writer with practical experience in the fintech industry. When not writing, he spends his time reading, researching or teaching.

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