A new digital platform, Dx.exchange is allowing users to trade in top performing stocks like Facebook, Microsoft, Netflix, Tesla, and Apple to users all over the world even when the stock markets are closed for trading.
According to official update it’s registered in Estonia and has two offices, another one at Isreal. Currently, the exchange is offering the option to trade only on 10 stocks registered with Nasdaq and have plans of expansion to the New York Stock Exchange along with Hong Kong and Tokyo.
Every stock available is backed by a ERC 20 token and traders are entitled to the same cash dividends and here the platform itself is not involved.
Describing the methodology of its functioning the platform says, “MPS MarketPlace Securities, Ltd, under the supervision of the Cyprus Regulator, CySEC,” buys actual stocks according to the demand on the exchange platform. Adding “They generate smart contracts, ERC20 tokens created on Ethereum’s network to represent those stocks.”
Albeit the regulations related to stocks will be monitored by the U.S. authorities, the CEO of the exchange Daniel Skowronski talking to media outlet Bloomberg said that they don’t require permission from the U.S. regulators to offer their services as they are out of their jurisdiction. As it’s licensed by the Estonian Financial Intelligence Unit with complete independence to operate within the European Union.
Responding to a mail by Bloomberg he said that they have a wide market “opportunity in tokenizing existing securities,” adding the importance of their innovation into merging the both traditional and crypto market together.
Licensed with Cyprus’s regulator of finances, MPS MarketPlace will hold the stocks on behalf of the token owners and will maintain a segregated account for the same, and DX is offering is compliant with the Mifid II directive of Europe, Skowronski said further.
As the crypto market is trying to stabilize itself, new ideas are emerging all around especially in terms of the stable coins and security tokens. And platforms like DX are we think a very necessary and important step towards bringing the niche market of share market to a wider set of people.
Image Source – The Balance