Announced today, European Union (EU) regulated digital DX exchange will launch tokenized stock trading next week.
DX Exchange stock tokens
Reporting on a press release from the DX Exchange, CoinTelegraph described DX as the first exchange of its kind, conducting tokenized stock trading under complete EU regulatory compliance, utilizing Nasdaq’s Financial Information Exchange (FIX) in the process.
Built on the Ethereum blockchain, each token will represent ownership of an underlying stock for companies such as Google and Facebook. These underlying stock shares will be bought for users by one of DX’ partners, MPS MarketPlace Securities Ltd.
These digital stocks give the added utility and potential of the blockchain, while also including the benefits of the traditional market. As reported by CoinTelegraph, the DX press release touted a 1:1 asset backing.
Digital stocks are backed 1:1 to real-world stocks traded on conventional stock exchanges. You purchase tokens for leading assets that you choose to invest in, such as Google, Amazon, etc. Therefore, when you are a token holder, you own shares of the company.”
An interesting observation was made in a recent Bloomberg article on the DX Exchange announcement. The article pointed out that these stock tokens will be tradable 24/7, even at times when the stock market technically is closed (nights and weekends).
Bloomberg also noted these tokens will provide buying opportunities for customers in other countries who may not have had the chance to interact with such stocks until now. Not only that, but these tokens will allow for fractional investment, which is not possible when buying traditional stocks.
Additionally, token holders will receive applicable dividends associated with each token’s stock, having the same effect as if the person actually holds the stock itself.
What is the DX Exchange?
According to their website, the DX Exchange is a regulated cryptocurrency exchange touting zero trading fees, as long as users pay a membership fee equivalent to $10 USD every month.
Our exchange is built on leading market technology, where members will benefit from low latency, enhanced performance, even during times of high volume.”
Prior to today’s announcement, DX Exchange made a separate announcement yesterday, according to a release from PR Newswire.
DX.Exchange announced today that it has engaged AlgoZ, a Fingenom Group company, to provide market making services and additional liquidity solutions on its exchange.”
AlgoZ will statedly help the DX Exchange bolster round-the-clock crypto asset trading liquidity. The DX Exchange aims to launch on January 7, utilizing AlgoZ from the start.
DX Exchange is one of the first acts of institutional interest this year. Last fall, Crypto Insider reported on several instances of institutional interest that could eventually lead into the next crypto bull market.
It seems, however, that mainstream products have run into several regulatory roadblocks, as seen in the VanEck-SolidX bitcoin ETF delay.
The Intercontinental Exchange (ICE) also posted another delay for its Bakkt crypto futures platform, pushing its January 24 launch even further down the pipeline, according to a recent announcement from ICE.