Cryptocurrencies can start to conquer the securities market due to the fact that it is easier and more convenient for investors to trade in a way that in the traditional way, where real assets are, in fact, difficult to “touch”.
From January 7, the Estonian cryptocurrency exchange DX.Exchange will begin trading in stock exchange shares of some of the largest public companies, such as Google, Facebook and Amazon. Deposits will be accepted not only in traditional means of payment, but also in cryptocurrency:
DX.Exchange uses a bidding and processing mechanism from Nasdaq to trade digital shares and prevent market manipulation. Users will acquire tokenized securities that will give them ownership of real shares. In this case, the ratio of the cost of tokens and the value of the shares will be 1: 1.
The purchase of real shares under the control of the Cyprus Securities and Exchange Commission will be the responsibility of MPS Marketplace Securities, Ltd. It will also generate the corresponding ERC-20 tokens .
https://t.co/gavrewTi9F is ready to go live! The platform will launch on the 7th of January #exchangeyourway https://t.co/naAIacseUb
– DX.Exchange (@DXdotExchange) December 23, 2018
As is known, the classical world of securities and the cryptoecosystem are trying to find ways of coming together with each other. One of them can be offered by DX Trade. On the basis of real shares, their digital images will be issued, and holders of cryptocurrency will be able to purchase such tokenized shares without any problems.
The idea of issuing on the basis of ordinary shares of other assets in the modern financial world is implemented multifaceted. As the expert of the Mises Institute Caitlin Long notes, practically all trade in securities on Wall Street is currently not carried out by “living” assets, but receipts for them, and the securities themselves are “stored” in a documentary and uncertificated form in the Depository Depository Trust & Clearing Corporation (DTCC), which controls 99.9% of such securities.
In addition, there are American depositary receipts (ADRs) and ordinary depositary receipts (GDRs) that circulate in the European Union — securities that are official “receipts” for those assets whose withdrawal is not directly convenient for any reason or is not financially justified. in terms of listing costs.
Tokenized securities are higher-level “receipts”: transactions on them can be carried out around the clock, which is a breakthrough compared to the classic securities market. In addition, their turnover does not require the creation of any depositories, as mentioned by cryptanalyst Anthony Pompiano.
Tokenized shares can fall in love with investors. In addition, as reported by DTCC in October, all securities trading on Wall Street can be transferred to the blockchain .
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