While everyone is eagerly waiting for ICE (Intercontinental Exchange) to launch its digital asset platform, Bakkt, NASDAQ steals the focus by launching DX.Exchange — a regulated digital asset exchange in Europe.
The announcement comes just a few days into 2019 with a confirmed launch date on Jan 7. DX.Exchange is company located in Estonia and holds operating licenses with the Estonian Financial Intelligence Unit. Since Estonia is a member of the EU, the digital asset platform is fully compliant with EU regulations.
DX.Exchange has mostly flown under the radar and that could be attributed to the fact that many expected it to be just another cryptocurrency exchange. However, it looks like the team kept the best for last — announcing that its customers will be able to purchase tokenized stocks. This makes it the first platform to offer trading for tokens backed 1:1 by company stocks.
In four days you can, for the first time, invest your #Cryptocurrencies in Digital Tokenized Stocks backed 1:1 by Real Stocks – Exclusively on https://t.co/gavrewTi9F. Read the full story from Bloomberg (@business) at https://t.co/0jemMhg2ND #exchangeyourway pic.twitter.com/4Yz8XgO7jP
— DX.Exchange (@DXdotExchange) January 3, 2019
The stocks will be purchased through a different entity and ERC-20 tokens will be issued to represent each share. This means anyone will be able to buy shares of Facebook, Alphabet, Apple or any other listed company. While it’s unclear how the tokens will be issued and by whom, it’s nevertheless an interesting development in the financial world.
Moreover, DX.Exchange will represent another fiat on-ramp opportunity for cryptocurrencies. The platform will accept fiat currencies and digital currencies for deposits. In order to access the platform, there will be a monthly membership of $20. The more interesting aspect is that the exchange will seemingly have its own currency DXCash, which would offer a discount on any fees on the platform — similar to the BNB token of Binance.
From the website of the platform, the following cryptocurrencies seem to be guaranteed to be initially listed: Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), XRP (XRP), Litecoin (LTC), Dash (DASH), DigiByte (DGB), OmiseGo (OMG) and Cardano (ADA). While the most prominent digital assets are often automatically added, some lesser known project like DigiByte or OmiseGo might have gone through the listing process of DX.Exchange. The platform has a comprehensive token listing questionnaire that has to be fulfilled and assessed by its team before having a chance at being listed.
DX.Exchange has a good chance at positioning itself as a next-generation exchange. By combining the appeal of digital assets, the robustness of traditional stocks, and regulatory security, it could become the platform of choice for the old and new generation of investors. Moreover, the digital asset platform also provides access to institutional investors.
With the delay of Bakkt’s launch and regulatory uncertainty in the U.S., could a cryptocurrency exchange from Europe use this to its advantage to build up a significant lead?
What do you think? Will DX.Exchange succeed in offering tokenized stocks? Would you start trading traditional stocks, if these were tokenized and easier to transact? Let us know your thoughts in the comments below!