- DX.Exchange will enable retail and institutional investors to hold real stocks in ERC-20 Tokens
- The exchange has already been approved by the EU
- DX.Exchange is scheduled to go live on January 7, 2019
According to a report by Finance Magnets, published on January 3, 2019, the Estonian cryptocurrency exchange DX.Exchange is set to go live on January 7, 2019. Notably, the exchange has joined forces with MPS MarketPlace Securities Ltd., which will enable the investors to buy stocks of some of the largest publicly listed companies on stock exchanges the world over.
Tokenized Stocks of Google, Facebook, now a Reality
DX.Exchange’s partnership with MPS MarketPlace will facilitate the exchange to offer tokenized shares of some of the largest publicly traded companies the world over. Some of these companies include Google, Facebook, Amazon, and Intel, among others.
The European Union (EU) regulated exchange will allow trading of these stocks in the form of ERC-20 tokens. These ERC-20 tokens will be collateralized by real stocks held by MPS MarketPlace Securities Ltd., which will provide much-required liquidity in the emerging asset class.
Daniel Skowronski, CEO, DX.Exchange stated:
“We have been waiting to go live with the most upgraded, inclusive, and modern version of our exchange platform. The industry is very dynamic, and with new and exciting products such as digital stocks making their grand entrance, we’re confident that the hard work to perfect the trading experience was well worth the effort.”
How does the Mechanism Work?
While blockchain technology is still in its infancy, creating a bridge between traditional stock markets and the new “tokenization” method is a giant step forward in the right direction.
The tokenization of real stocks will happen in the following way.
Firstly, MPS MarketPlace Securities will issue the ERC-20 tokens that represent the real stock on the Ethereum blockchain. The issuance of digital tokens will be done via smart contracts.
Next, based on the demand for tokens on DX.Exchange, MPS will buy and store traditional stocks with themselves to ensure the digital tokens are backed by real assets.
Finally, the tokens floated on the Ethereum blockchain will be available for the public to buy and sell. These tokens will represent shares from companies listed on top stock exchanges worldwide, including Nasdaq, NYSE, Hong Kong Stock Exchange, and the Tokyo Stock Exchange.
2019 Shaping up Nicely for Crypto Exchanges
While 2018 saw many exchanges and businesses in the cryptoverse shut their doors, a rational market in 2019 could open doors for new businesses to flourish in the industry.
BlockchainReporter informed on December 6, 2018, how VC arms of companies like Fidelity Investments and Nasdaq threw their weight behind ErisX, an upcoming cryptocurrency exchange primed to launch in 2019.