How to buy tokenized shares of Amazon, Apple, Google for cryptocurrency

Cryptocurrency exchange DX.Exchange based on Nasdaq announced the launch of its platform on which it will be possible to acquire shares of global corporations such as Amazon, Apple, Facebook, Google, Intel, Microsoft, Netflix, Tesla and others.

Users of the site will be able to trade tokenized shares of various companies using crypto-deposits. What is the need for tokenization of shares and how will this method of exchange work simplify the systems and expand the possibilities for interaction between two cryptocurrency and classical industries?

How will the platform work and where does the Nasdaq?

The DX.Exchange trading platform will allow users to acquire tokens that represent shares of various technology firms listed on the world famous Nasdaq exchange. The company will use the Nasdaq compliance mechanism to facilitate trading in digital "securities" and protect against market manipulation.

As stated in the statements of the platform, deposits will be accepted in the PTS, ETN, BCH, USDT, DASH, LTC, XRP. Clients of DX.Exchange, as explained by the chief operating engineer Amedeo Moscato, will acquire ownership rights to the shares not directly, but through the purchase of tokens, which, in turn, will represent the shares of the firms.

“The ratio of shares and tokens will be 1: 1. After the purchase of assets, users become holders of cryptocurrency and securities companies. Thus, we offer to invest in stocks of companies through cryptocurrencies , ”says Moscato.

DX.Exchange entered into an agreement with the Cyprus firm MPS Marketplace Securities Ltd, which resulted in MPS purchasing real stocks based on consumer demand and generating ERC-20 tokens to represent each share. The issuing company of the token is under the supervision of the Cyprus Securities and Exchange Commission, and DX.Exchange complies with the rules and authorities of the European Union (EC), and therefore obliges its users to undergo the KYC and AML procedures.

In addition to this mechanism, the platform plans to use the Nasdaq financial information exchange protocol, or FIX, the financial information exchange, which is the standard used by a number of US securities trading firms.

The standard message protocol used on the platform allows you to support trading through the API, so the platform can be integrated with market makers, liquidity providers, algorithmic traders and hedge funds. DX.Exchange, unlike classic trading markets, will work around the clock, as cryptocurrency exchanges operate.

The main thing in the tokenization of shares is coordination

Crypto industry analysts are increasingly pointing to a fairly new development of events that can revive the space – the placement of companies' securities: stocks and bonds on the blockchain.

The so-called security token is a new fashionable hyip word. This term is part of a phenomenon in the industry known as “tokenization” – the transformation of real assets into digital tokens. In the case of security tokens, classic stocks and fixed income are converted into digital assets using blockchain technology .

Each token is supported by one share of the desired company, in which traders want to invest, gives them the same cash dividends. Due to this, new opportunities for trading open up, other forms of ownership of securities appear without intermediaries, because everything is fixed on the blockchain.

Investors thanks to the essence of cryptocurrency can trade in digital stocks 24 hours a day, even after the markets are closed. “The ability to trade in various currencies and stocks around the clock provides investors with convenience and liquidity,” Dan Doni, founder and CEO of Securrency fintech firm, told CNBC .

The only thing that needs to be taken into account in the tokenization of corporate assets is the consent of firms to trade their shares using cryptocurrencies, Doni said. "We are not sure and even skeptical about the DX.Exchange model, because we do not consider it acceptable to transfer tokenized shares of the company without the consent of shareholders," said the director of Securrency.

In a particular case with DX.Exchange, it turns out that you do not need to get this consent from companies, because the crypto-exchange uses the resources of Nasdaq, with which there are agreements. The interaction of representatives of a digital exchanger, for example, with Apple or Google, whose shares are traded on Nasdaq, is only an ethical component, left to the discretion of the company. In addition, DX.Exchange complies with EU requirements, which means that from a legal point of view, the project fulfills all the necessary requirements.

Considering the above, while observing all the rules for placing shares and coordinating their activities with companies, the model of tokenization of shares may comply with regulatory standards. The symbiosis of cryptocurrency and fiat industry can take securities trading to a new level of development.

New US charter for tokenization of company shares

In the future, companies will strive to tokenize their assets that are listed on exchanges. This is understood by American politicians, namely the governors of the states of Colorado, California and Wyoming, express support for the cryptocurrency market. Thus, according to the official website of the Wyoming state legislature, on January 16, a bill was submitted allowing corporations to issue digital coins based on the blockchain and tokenize shares.

If the bill is fully approved, it will enter into force on July 1, 2019. The document states that "the charter of a corporation may indicate that all or part of the stock of a corporation may be in the form of tokens." The bill lays the foundation for storing the so-called certificate tokens representing shares in the blockchain "or other secure, verifiable database" and allows their digital transfer.

In addition, Wyoming lawmakers passed two new bills aimed at creating a regulatory environment conducive to innovation in cryptocurrency and blockchain. One of the bills establishes a new class of assets, defining “blockchain tokens with the specified consumer characteristics [as] intangible personal property”.

Another bill concerns the creation of a regulatory sandbox – a controlled and flexible test environment that will help ensure the adaptation of the necessary laws and regulations necessary to make full use of innovations. A similar project was also proposed by the Ministry of Economic Development of the Russian Federation to create optimal conditions for business development.

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