Exchange Announces It Can Now Trade The Untradeable We’ve all heard the phrase ‘bank the unbanked’ but today DX.Exchange, a digital asset exchange, unveiled that they are now open to trade security tokens, allowing millions across the world access to the trade market. Earlier this year the company started to trade derivatives of real world stocks which allowed those who could not often afford to invest their money in big companies such as Apple or Facebook, to buy part of a share using a digital format.
Joining these stocks today is the ability to digitize security tokens, these are tokens that are tied to real, traceable assets such as real estate or investment platforms, making the exchange a one stop shop.
A niche market
For CFO Daniel Skowronski, he believes that converting real world items to a digital format is where the world is going. “We class ourselves as a digital asset exchange and believe that everything will look like this in 2-5 years. We’re opening up the entire financial world industry as a whole and servicing this bottom set of people that have been sorely missed before. Now you can buy as little as ten dollars of a share, instead of having the full amount which a lot of people simply can’t afford.”
You might ask ‘what’s the deal’ if someone buys $20 dollars of Amazon and in two years it’s worth $120? But if you take Indonesia with 150 million people but only 400,000 trade shares, multiply that 10 dollars by millions of people and that’s real wealth that wasn’t there before. We’ve found a niche market and now we want to service it.”
There are some technicalities as to who can trade the security tokens, which can be purchased with both FIAT and major cryptocurrencies as such as Bitcoin, ETH, USDT and XRP. DX.Exchange is now the first exchange in the world to allow both institutional and professional traders access to security tokens. The company is building on an existing partnership with MPS Marketplace Securities Ltd., which will guarantee market liquidity for guaranteed 24 hours a day, seven days a week.
To facilitate this DX.Group will restructure into a new entity called DXtech Exchange as announced by CEO and Co-founder Daniel Skowronski at today’s TOKEN2049 conference in Hong Kong. During his speech he said that the move would “Mark a further step towards realizing its vision of tokenizing the world and opening the doors to a new crypto economy.
“We believe that all assets whether its securities, art or real-estate will be tokenized. This tokenization has many benefits but the strongest is the ability to help create wealth for people all over the world no matter their social economic situation. At DX, we can help trade the untradeable.”
DX.Exchange plans to offer the widest selection of security and asset-backed tokens in the world. Any security token can submit an application to become listed as of today. Ultimately, DX.Exchange aims to list a range of security tokens such as company shares, company profit splits, funds, bonds, real estate or art, combined with the unique offering of digital stocks, ETFs and cryptocurrencies. Companies can provide their investors with access to immediate liquidity, and all Institutional and professional investors can invest in real digital assets.
How does Security Token Trading Work?
DX.Exchange already partners with MPS Marketplace Securities Ltd (MPS) for the provision of tokens backed by real-world stocks and ETFs. Trading with security tokens operates in a similar way, with an additional layer of Know Your Customer (KYC) checks. Once the KYC checks are completed, a user will be able to access the list of security tokens they are eligible to trade based on their investor profile. The KYC process is MiFID II compliant, opening the doors to security token trading for professional investors
Therefore, MPS will list security tokens, and act as a counterparty for all security token trading on the DX.Exchange platform. When there’s a trade match in the order book, MPS will buy from one client and sell to the other, taking accountability for trade clearing. The matching is automatic, providing the user with a seamless experience of trading on the DX platform.
All trades on DX.Exchange are matched on market-leading matching engine technology, and will be monitored by a surveillance system....