The Nasdaq-powered service is due to launch 7 January.
Next week, a new digital exchange powered by Nasdaq will be launching the first Ethereum-based tokenised stocks fully regulated in the EU, according to a recent report from Bloomberg.
Dubbed DX.Exchange, the exchange aims to tokenise a variety of large US stocks, such as Tesla, Facebook and Apple, and will allow investors to trade in those companies even when stock markets are closed.
Based for now in Estonia and Israel, DX.Exchange plans to expand to the New York Stock Exchange, Tokyo and Hong Kong. The exchange will offer digital stocks based on shares owned by MPS MarketPlace Securities Ltd., and will include digital tokens connected with 10 Nasdaq-listed companies, all implemented on the Ethereum network, which will regulate the token amount to correspond to DX Exchange demand.
The digital securities will each be backed by one regular share, says the report, with shareholders receiving the same cash dividends, even if the companies aren’t directly involved.
As outlined in the Bloomberg report, digital stocks could represent a promising step forward for crypto and investments, as they permit investors to trade stocks without being restricted by the opening and closing of exchanges. They also make it easier for US shares to be accessed by international investors, meaning the American companies included on the exchange could see a wider variety of investments coming in from overseas.
Apparently, DX.Exchange won’t even need permission from the SEC to launch its service, as the company has already received full authorisation by the Estonian Financial Intelligence Unit to operate in the EU.
“We saw a huge market opportunity in tokenizing [sic] existing securities,” DX.Exchange CEO Daniel Skowronski wrote in an email. “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.”