It’s a new day for DX Exchange, the Estonian platform that is poised to allow trading for a range of cryptocurrency pairs, as well as digital tokenized stocks.
Today is the day that DX Exchange unrolls its project in partnership with the NASDAQ.
One notable piece of this puzzle is the trading of XRP, which is beginning today. Ripple’s XRP token has been a mainstay of the crypto market in the sense that it serves as a cryptocurrency and also as a payment facilitator. Many consider XRP to be either the second or third most important crypto offering after Bitcoin and, in some cases, Ethereum.
XRP isn’t the only coin it’s getting a shot in the arm from DX exchange today – other crypto pairings are also possible including trades based on Bitcoin, Ethereum,, Litecoin, Cardano, OmiseGo, Enigma, ShareToken, and Digibyte. But what many traders are looking at is digital stocks that are backed with real-world stocks. Here’s how it works – investors buy tokens representing stocks of the companies that they want to invest in; token holders then own shares of companies like Google, Amazon and Apple.
It’s all a heady business.
The platform will provide investors with a brand new original way to penetrate the US market,” writes Rada Mateescu at Crypto Daily Gazette. “It launches with zero trading fees, and it stated that 500,000 people have already pre-registered before it goes live.”
However, the details are not fully fleshed out. Writers like Adrian Barkley at CryptoDaily cite this ciopy on the DX Exchange web site:
“MPS MarketPlace Securities, Ltd, under the supervision of the Cyprus Regulator, CySEC, purchases real world stocks, in accordance to token demand in the DX.EXCHANGE platform. They generate smart contracts, ERC20 tokens created on Ethereum’s network to represent those stocks. The tokens offered for sale are be based on leading public company shares listed on the biggest exchanges like NASDAQ, NYSE, Hong Kong Exchange and Tokyo Stock Exchange … Each token is backed 1:1 by one share of real stock. These shares are held in a segregated account.”
“Essentially, this means that (the DX Exchange setup) is similar to Tether but instead of dollars it is with stocks,” Barkley writes. “With this, the same issues would arise and questions like how do we know they really hold stocks would come into play.”
Watch this space – DX Exchange is going to change the game for crypto trades. Will new market activity follow?
