In its effort to bridge the gap existing between the crypto space and other industry. A popular and regulated Estonia-based crypto exchange, DX Exchange, has announced plans to provide its users with the access to invest in various “digital stocks” using cryptocurrencies on its platform.
DX Exchange To Offer Trading in Tokenized Stocks
Through this, crypto traders on the platform now have the chance to invest in other financial markets, thereby diversifying their portfolio.
As a regulated European platform, DX Exchange already has a lot of users, most of which are focused on cryptocurrencies.
According to a report submitted by the exchange, it will be offering trading opportunities for major stocks around the world. The tokenized stocks (“digital stock”) trading is expected to commence on Jan. 7, 2019.
Just like in the case of stabelcoins, the exchange made it clear that the said digital stocks will be “backed 1:1 with the real-world stocks traded on conventional stock exchanges”. The agreement existing between the exchange and MPS Marketplace Securities Ltd, is said to be the driving force behind this initiative. MPS Marketplace Securities Ltd, a company which issues tokens representing stocks via smart contracts and buys and holds the real world stocks according to demand on the platform has entered into an agreement with the exchange to help power its new stock trading initiative.
The exchange accepts deposits through most major crypto such as DASH, LTC, XRP, BCH, BTC, ETH, USDT. The exchange also accepts deposits in fiats.
With the stocks to be traded on the platform being digital. It simply means, unlike traditional stock exchanges, users on the platform now have the opportunity to trade stock every day of the week using cryptocurrency.
DX Exchange holds a licence from the Estonian Financial Intelligence Unit, therefore, it is in “full compliance with MiFID II (the latest EU financial regulations)”. As a result of this, anyone planning to make use of the platform should get ready for a comprehensive AML/KYC process.