A new exchange launching in Europe called DX Exchange is coming out of a very innovative way to offer securities on the blockchain. You can now buy the ten top stock listed on the NASDAQ which are Alphabet, Apple, Amazon, Facebook, Microsoft, Tesla, Netflix, Baidu, Intel, and Nvidia. There are also going to be offering stocks quite soon from the New York Stock Exchange, the Tokyo Exchange, and the Hong Kong Exchange. They starting off with these top 10 because they are supremely massive.
How will DX Exchange Work?
Basically, DX Exchange will buy the stocks and then they are going to issue ERC20 tokens which represent the holding of those stocks and then they are going to be selling those on their exchange. So this will allow basically for people to invest in these real-world stocks and then be entitled to those same real-world dividends from those stocks and be able to move in and out of them easily. This is really exciting in terms of opening up more liquidity to come into the stock markets and more liquidy coming into the crypto markets overall.
Advantages of having stocks represented as ERC20 tokens:
24X7 trading: Keeping in mind that the stock markets are open from 9 AM to 4 PM, Monday to Friday, Public holidays off etc, the crypto markets have been a real revolution in terms of 24X7 markets. This will yet again bring traditional into the non-traditional.
A fraction of a share: With all the shares tokenized, getting fractions of shares will be made possible. If you cannot afford a full stock of Apple, you can easily buy a half or quarter stock from DX Exchange.
Store stocks on Ethereum wallets: Tokenization of stocks will let you store your stocks on your Trezor, Ledger wallet, MyEtherWallet or others. You no longer have to trust some unknown broker.
DX Exchange: An EU Regulated Security Tokens Exchange
DX Exchange is the first EU regulated security tokens exchange and this step will allow us to see more official security token licensed crypto exchanges coming on board in the coming years. The exchange also offers crypto to crypto trading, fiat to crypto trading, fiat onboarding, deposits and withdraws using credit cards, no trading fees and much more. So overall, it is not only a robust sounding cryptocurrency exchange but offers the ability to invest in stocks on top of that. This trend will continue and we will see more and more exchanges offering securities and traditional investments to investors to access wider liquidity, 24X7 markets etc.
Overall, this is a very positive development for the crypto space. What do you think about DX Exchange? Tell us in the comments section below.