A new digital exchange opening this week is launching digital tokens based on the shares of US behemoths like Apple, Facebook, and Tesla.
Bloomberg reports that Estonia-based cryptocurrency exchange DX.Exchange will offer token versions of the shares of 10 Nasdaq-listed companies. The move will allow investors to trade in these companies from not just outside of the US, but even when traditional stock markets are closed.
Each digital token is backed by a company share and holders will be entitled to the same cash dividends – despite the companies themselves not being involved. DX.Exchange’s digital stocks will be based on actual shares held by its partner MPS MarketPlace Securities Ltd – a multi-asset broker-dealer.
DX.Exchange also plans to expand to the New York Stock Exchange, as well as into Tokyo, and Hong Kong.
This initiative will serve as a litmus test on investor appetite for cryptocurrency solutions to traditional stock problems, such as foreign investors who are unable to access shares of US-based companies.
DX.Exchange is currently licensed by the Estonian Financial Intelligence Unit with complete authorization to operate in the European Union. Its CEO Daniel Skowronski says that as the company does not operate in the US, permission is not needed there for its to offer its products.
“We saw a huge market opportunity in tokenizing existing securities,” he added, “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.”
Tokenization is increasingly talked-about among cryptocurrency enthusiasts for the advantages it offers. Digital stocks, for example, can be traded anytime instead of being subject to stock exchange hours. They can be also be bought in fractions of a share.