DX.Exchange, an Estonia-based crypto exchange powered by Nasdaq’s matching engine announced that it will soon tokenise US stocks including Tesla, Facebook and Apple. This will allow digital asset investors to trade even when stock markets are closed.
Tokenisation involves transforming real-world assets into digital contracts using blockchain technology. Crypto enthusiasts believe that tokenisation of all assets including fine art and real estates, stocks and bond is the key to development this year. Digital stocks also allow investors to buy shares in fraction and foreign investors to buy and sells U.S. stocks easily.
According to a Bloomberg report, DX.Exchange will offer digital tokens that are connected with 10 Nasdaq listed companies and will be based on shares owned by MPS Marketplace Securities. The tokens will be based on the Ethereum network whereby the amount of the tokens will correspond to DX Exchange demand. MPS MarketPlace will hold the stocks and keep them into separate accounts.
The report also said that this offering will later on expand to New York Stock Exchange and other markets in Tokyo and Hong Kong. Each digital asset will be backed by one regular share and investors will be entitled to the same cash dividends, even if the companies themselves are not involved.
When asked whether their offering will need permission from the U.S. Securities and Exchange Commission, DX.Exchange CEO Daniel Skowronski said they don’t need to ask permission from SEC since their company is not operating in the U.S. DX.Exchange is licensed by the Estonian Financial Intelligence Unit and they are fully authorised to operate in the EU.
“We saw a huge market opportunity in tokenising existing securities. We. Believe that this is the beginning of the traditional market’s merge with blockchain technology. This is going to open a whole new world of trading securities old and new alike.”
As of this moment, SEC has not issued any comment on the matter as DX.Exchange prepares to launch next week.