A plethora of major U.S. stocks will arrive on the blockchain next week thanks to the launch of DX.Exchange, a digital exchange based out of Estonia.
According to a recent report by Bloomberg, DX.Exchange will offer digital tokens based on shares of 10 Nasdaq-listed companies, including Alphabet (GOOGL), Apple (AAPL), Amazon (AMZN), Facebook (FB), Microsoft (MSFT), Tesla (TSLA), Netflix (NFLX), Baidu (BIDU), Intel (INTC) and Nvidia (NVDA).
Each security token is backed 1:1 with a regular share and holders of the tokens will be entitled to the same cash dividends as regular shareholders. Additionally, users will be able to purchase partial shares and trade after equity markets close. The actual stock is held by DX.Exchange partner MPS MarketPlace Securities while the tokens are built on top of the Ethereum (ETH) blockchain using the ERC-20 standard.
DX.Exchange will not be overseen by United States regulators, and the companies themselves are not involved in the tokenization process. However, the exchange is licensed by the Estonian Financial Intelligence Unit with full authorization to operate in the European Union.
“We saw a huge market opportunity in tokenizing existing securities,” CEO Daniel Skowronski told Bloomberg. “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.”
Skowronski notes that DX.Exchange plans to expand to the New York Stock Exchange as well as in Tokyo and Hong Kong.
This news comes as Nasdaq (NDAQ), the second-largest stock exchange in the world by total capitalization, is planning to list Bitcoin (BTC) futures as early as the first quarter of 2019. There has been no indication as to when or if Nasdaq would consider an expansion into tokenized securities, but DX.Exchange does list Nasdaq as a technology partner for this venture and the exchange uses Nasdaq’s Financial Information eXchange (FIX) protocol.
— DX.Exchange (@DXdotExchange) December 23, 2018
DX.Exchange is scheduled to launch on Monday, January 7.
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.