European Digital Exchange to Incorporate Blockchain into Stocks

By Joyce Joseph

DX.Exchange, the digital exchange which plans to begin its operations from the coming week has already created a buzz by claiming that their blockchain-based platform will soon put traditional stock trading methods to rest.

This platform once in action will allow people to trade stocks of companies even when the markets are closed. They have decided to go big from the very first day of their operations as the stocks that will be trading on their platform also includes those of Apple.Inc, Facebook.Inc and Tesla.Inc.

You May Also Read: Blockchain Use Case: Payments

DX.Exchange eases the method of investing into stocks for foreign nationals who had to struggle to get access through the conventional ways.

The company plans to offer digital securities for shares of 10 Nasdaq-listed Companies for now and will soon expand to the New York Stock Exchange along with those present in Tokyo and Hong Kong.

The strategy they have adopted for such kind of execution is based on Tokenization. Each digital token will be assigned to an individual stock and the owners of the coin will receive the same cash-dividends that the stock offers to the investors using the traditional method.

DX.Exchange has partnered with Market Place Securities Ltd.(MPS) that holds the stocks on behalf of the token owners and will handle the security concerns that come with it. MPS is a registered organization and got licensed by Cyprus’s financial regulator.

The CEO of DX.Exchange quoted :

“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.” 

This strategy implemented by the company, Tokenization, has gathered enough attention in the past but now it has got valid reasons to be in the news with this execution. 2019 could be the year for extensive integration of blockchain with the real-world assets like contracts, bonds etc.