A new start-up, DX.Exchange, based in Estonia, has announced that they will allow traders to buy and sell tokenized stocks from Monday. The traders can now trade tokenized stocks of top companies such as Amazon, Apple, Tesla, Google, Facebook, and many more.
What does DX.Exchange Offer?
DX.Exchange’s CEO Amedeo Moscato said:
“We, at DX.Exchange, are launching the First Regulated & Digital Stocks Exchange of the world! Connecting Markets, each Digital Stocks is backed 1:1 with Real Stocks.”
While explaining about the way the entire thing works, they have mentioned in their website that MPS MarketPlace Securities Ltd buys real world stocks of leading companies as per DX.EXCHANGE platform’s token demand. Once these stocks are bought, MPS MarketPlace Securities (which is supervised by CySEC, the Cyprus Regulator) generates smart contracts (representing the real world stocks), ERC20 tokens, on the Ethereum network.
Reports say the tokenized company stocks that are offered for buying and selling on the DX.Exchange are real-world stocks of top companies that are listed on the leading exchanges across the world such as NYSE, NASDAQ, Tokyo Stock Exchange, and Hong Kong Exchange.
What’s the Process of Trading Tokenized stocks on DX.Exchange?
The traders interested in trading Digital Stocks of leading US companies on Dx.exchange are required to carry out the following tasks –
- Go over an approval form, mentioning the Term & Conditions.
- Become MIFID 2 compliant – According to this, the user has to agree in entering an agreement with MPS MarketPlace Securities Ltd for buying and selling tokenized stocks.
The notification on DX.Exchange’s website also says:
“MPS MarketPlace Securities, Ltd is the trust holder of the stocks on behalf of the token holders. Since Digital Stocks are not like CFDs with leverage, there are no carrying costs for the token holders. Each token is backed 1:1 by one share of real stock. These shares are held in a segregated account.”
When you are buying or selling tokenized stocks on DX.Exchange, it means you are basically trading Tether. However, the only difference is that the trade is done in terms of the digital stocks of real-world companies in place of fiat money such as US Dollars.
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