An Estonia-based platform called DX.Exchange, which soft-launched back in January, has reportedly opened up its market to secondary trading of security. This was made possible after adding the much-needed support. Here is everything about it in a nutshell.
Secondary Trading of Security Tokens
According to the announcement, the exchange is now able to let companies list their security tokens previously offered on other platforms. Institutional investors based in Europe are now capable of buying the tokens directly on the exchange for Bitcoin, Ether, XRP, Tether, or even Fiat.
There is a catch, though. Basically, only a single token is needed to be listed on DX.Exchange in order to start. And it is none other than the exchange’s very own native token called IGWT token.
Eventually, the company is expected to roll out its own technology specifically designed for asset tokenization. This revelation is courtesy of Daniel Skowronski, the platform’s co-founder. For now, however, the firm is just all about facilitating the trading of all existing security tokens.
As for the native token, there are at least 18 million IGWT expected to be offered in what appears to be a STO, also known as closed security token offering, for a certain period of time. From there, around 10 percent of the exchange’s profits will be distributed regularly to the token holders.
Bridging the Gap
As of this writing, DX.Exchange is functioning in a closed regime and has roughly 8,000 users, all of whom are believed to be already pre-registered under its wings. Skowronksi stated that their main launch is expected to hit April. Right now, users are able to trade at least 10 digital currencies, including Bitcoin, Bitcoin Cash, Ether, Litecoin, XRP, and OmiseGo, among others.
Moreover, users are given the ability not only to buy but to also trade ERC-20 tokens, all of which are said to be directly supported by real-world securities. This includes, but not limited to, stocks of Facebook, Google, Tesla, and Amazon, among 30 more. The stocks, in particular, are bought and held by MPS Marketplace Securities Ltd., which is a brokerage registered in Cyprus.
According to Skowronski, the company’s vision is to bridge the gap between the new digital world and the old world. He added that the company believes all assets must be tokenized, and it does not matter if they are securities, real estate, or art.
The executive claims that there are lots of benefits to this tokenization. But if one is to look at the bigger picture, the most interesting benefit is to help create wealth for individuals across the world regardless of their respective social-economic situation.