Apple, Google, Facebook, Amazon, and Tesla, among others, can have their stocks tokenized on top of the Ethereum (ETH) blockchain. According to a new report released by Trustnodes, there is a startup that is based in Estonia that will allow investors to buy and sell tokenized stocks.
Several FAANG Company Stocks Tokenized Using Ethereum
The company called DX.Exchange is going to launch the first regulated and digital stocks exchange in the world. Users will be able to purchase digitalized stocks that are backed 1:1 with real stocks.
On January 7, the company will be launching its trading platform allowing clients to purchase these stocks listed on the Nasdaq exchange. At the same time, users will have the possibility to use virtual or fiat currencies to purchase these stocks.
In a conversation with CoinDesk, the COO of the company Amedeo Moscato commented:
“Henceforth, when they become a token holder, they own stocks portions of the company’s stock, as the tokens are backed 1:1 to the real-world stocks. That makes them entitled to the same cash dividends that the stocks are worth.”
MPS Marketplace Securities, Ltd, that has an agreement with DX.Exchange, will be purchasing real-world stocks according to the demand of the users. After it, they will generate ERC-20 tokens to represent each share. The shares purchased by the company will be stored in a segregated account that is separated from any of MPS’ internal funds. This would allow the company to safeguard customers in an emergency case such as bankruptcy.
The Cyprus Securities and Exchange Commission will be supervising MPS Marketplace Securities. DX.Exchange will also be following regulations imposed by the European Union and authorities on the continent.
The firm will be using Nasdaq’s financial information exchange (FIX) protocol. This specific protocol defines electronic message exchanges that perform a transaction of securities.
This is one of the first attempts in the market of tokenizing stocks that would provide a clear answer on whether this tokenization can be applied to other assets as well. During 2019, there are several experts that predict that tokenization will play an important role in the market. DX.Exchange is taking the lead trying to innovate with the latest technologies available.