Ongoing tokenization of real economic sectors hits a new milestone as an Estonian-based startup announced the launch of the first crypto-platform that allows direct purchase of NASDAQ-listed stocks in a form of tokens.
For investors familiar with a basic concept of token economy, it was a long-awaited upgrade because previously tokens have been already discussed as an innovative solution for real estate investments and a multi-dollar stock market.
Due to an excessive security level and transparency related to blockchain tokens, major players at the financial arena such as NASDAQ started to consider alternative ways to replace traditional stock trading.
NASDAQ and DX.Exchange
In recent posts, Coinspeakes has already approached a NASDAQ-powered exchange conceived to serve as a bridge between the world of real stock companies and vividly evolving cryptocurrency market.
DX.Exchange is a crypto-exchange located in Estonia, which is officially supported by the world’s second-largest stock trading platform NASDAQ. The main function of DX.Exchange is tokenization of real stocks listed at NASDAQ, thus later the exchange will be able to purchase the tokens of major tech companies including Google and Apple for the vast swaths of crypto-assets.
Notable that by the time a partnership announcement reached the wide audience, DX.Exchange had already climbed a threshold of 500K pre-signed users. With the opening of crypto-exchange, the pillar of the financial industry, NASDAQ aims to cover a gap rapidly rolling out between powerful crypto-moneybags and the old way investments.
Earn Dividends on Real Stock Tokens
Until today a precise date of the exchange opening was unclear, yet it became known that DX.Exhange is going to start operating on January, 7. For the numerous pre-registered users it means that they will meet tokenized stocks of renowned companies in less than 3 days.
According to the announcement made by the DX.Exchange spokesman, the exchange abides by NASDAQ’s trading rules and matching engine that primarily signals advanced quality of services offered at DX.Exchange. The exchange will closely watch the full users’ compliance with the established trading policy seeking to prevent malicious activity and market manipulation.
Speaking of the tokens purchase itself it is worth mentioning that DX.Exchange customers will not obtain ownership of shares directly, but rather, will purchase tokens, which represent shares in a company. However, just like any other shareholder, a holder of tokens supplied by DX.Exchange will be rewarded with the same cash dividends that the stocks worth. This happens because of the unique nature of tokens available at DX.Exchange — they are pegged to real-world stocks in 1:1 ration.
To make such a great deal true, DX.Exchange teamed up with MPS Marketplace Securities, Ltd that will be responsible for the consistent tokens supply. Based on customer demand, MPS will acquire real-world stocks and generate ERC-20 tokens to represent every one of them.
The actual shares themselves would be stored in a segregated account separate from any of MPS’ internal funds or usage. This is intended to act as a safeguard against the company having issues or filing for bankruptcy, he explained.
As an additional security measure comes the direct supervision of the Cyprus Securities and Exchange Commission over MPS, while DX.Exchange will be organized in accordance with European Union regulations and authorities.
Celebrating the launch, MPS will reportedly purchase shares in AlphaBet, Apple, Amazon.com, Facebook, Microsoft Corporation, Tesla, Netflix, Baidu, Intel Corporation and Nvidia.