Stocks on blockchain? Could that work?

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Recently a new Estonia-based exchange, called DX Exchange, announced that they are about to offer stocks on the blockchain. The ten top securities listed on NASDAQ will soon be available for purchase. Alphabet, Apple, Amazon, Facebook, Microsoft, Tesla, Netflix, Baidu, Intel, and NVIDIA. Additionally, they plan to add stocks from the New York Stock Exchange, the Tokyo Exchange, and the Hong Kong Exchange. This is the first time a non-CFD (Contracts for Difference) company offers stock trading. You can buy stocks with Bitcoin on the Blockchain. DX Exchange new platform will launch on January 7th. “By tokenizing stocks of some of the biggest publicly traded companies like Google, Amazon, Facebook and more, DX is opening an untapped market of millions of old and new traders around the globe cutting out the middleman,” the CEO of the exchange, Daniel Skowronski, explained in the press release. 

ERC20 to tokenize stocks

The company will use Ethereum and ERC20 to tokenize the biggest publicly traded companies. They claim that this service will work similarly to stablecoins. The tokens will be backed 1:1 by the physical assets, and instead of fiat money, they will use stocks as a peg. MPS MarketPlace Securities issues these real stocks with which DX signed an exclusive agreement to bring tokenized assets to their platform. Users will have the ability to purchase fractions of shares if they cannot afford a full stock. Moreover, above all, investors and traders now will be able to store their stocks on Ethereum wallets, meaning that users could store stock tokens in their Trezor, MyEtherWallet, or Ledger wallets. They will no longer have to trust brokers whom they have never seen in person.

Trading stocks 24/7

This new feature will allow traders to trade these top stocks 24/7. Stock markets are open from 9 AM to 4 PM, Monday to Friday, and usually, they take a day off during public holidays. However, the crypto markets are open 24/7. Also, the reports say that DX is backed by NASDAQ matching engine, which provides “functionally-rich platforms support trading in any asset, anytime, anywhere and are both scalable and flexible to adapt as the firm expands into new asset classes or looks to offer additional services,” says in the NASDAQ website.

Daniel Skowronski explained:

“The crypto community has been talking about tokenizing assets for well over a year now without much progress, so we think the impact will be huge. Tokenizing securities is the first true use case where crypto collides with the real world 24 hours a day, seven days a week. With fractional ownership and no leverage like CFDs, these new digital stocks are a more sound and safer investment that traders can take home in their wallet. This is the future of securities not just new issues but all the thousands of listed securities around the globe.”

The first exchange to provide this service?

Although it looks like this is something no company has ever tried to achieve, there is a minor step-back in this thought. A company called BitShares offers their Decentralized Exchange called BitShares DEX. They have tokenized TESLA, APPLE, ALPHABET, APPLE and many more derivatives including GOLD and SILVER. An account named “DEXbot”, who posted his answer replying to the article said: “BitShares DEX already has that. Tesla Microsoft GE Apple Google already tokenized (we even have gold silver and oil) and available for trade with the added benefit of owning your private keys hence more secure; besides that BitShares blockchain can run all Nasdaq Dow Visa and Mastercard at once.”

The comment on CCN.com

That said, DX does not sound that original anymore, but there is a slight catch to this. BitShares DEX has almost no volume to these stocks on the blockchain. It seems like users of the DEX platform added them. DEXbot also claims that BitShares have had stablecoins since 2014, but “people don’t pay attention”. On the other hand, BitShares offers a decentralized exchange which is open source in comparison to DX Exchange which is regulated and licensed. They have probably spent vast amounts of money to get their word out, unlike BitShares. Most likely, their mass media coverage is thanks to their partnership with Bloomberg.com. However, this might be precisely what stock traders want. Maybe they don’t want to learn new platforms like Decentralized exchanges and want to trade 24/7 with a regulated company. And DX Exchange is about to offer that. 

Source:

https://goo.gl/AAh8EK
https://goo.gl/RXHBAe
https://dx.exchange
https://goo.gl/SuRWKr
https://cryptofresh.com/assets

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Breaking news: ICE to launch physically settled Bitcoin Futures

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Intercontinental Exchange (ICE), the owner of the New York Stock Exchange (NYSE), has announced that will list a physically-settled bitcoin futures contracts and form a new company Bakkt, whose mission is to make bitcoin a mainstream financial asset. 

Bakkt has been developed in partnership with a variety of big name companies like Microsoft, Starbucks and BCG. Bakkt will integrate with the ICE’s U.S. futures market and clearinghouse to list a physically-settled one-day bitcoin futures-product, complete with physical warehousing managed in-house by ICE. This product will launch in November, pending regulatory approval.

“Bakkt is designed to serve as a scalable on-ramp for institutional, merchant and consumer participation in digital assets by promoting greater efficiency, security and utility. We are collaborating to build an open platform that helps unlock the transformative potential of digital assets across global markets and commerce”, said Kelly Loeffler, CEO of Bakkt.

“In bringing regulated, connected infrastructure together with institutional and consumer applications for digital assets, we aim to build confidence in the asset class on a global scale, consistent with our track record of bringing transparency and trust to previously unregulated markets,” said Jeffrey C. Sprecher, founder, chairman, and CEO of Intercontinental Exchange.

These are big news for Bitcoin believers, because we could be seeing a more mainstream version of BTC in the very near future. A BTC with which you can save up your retirement fund or even use for retail. This year couldn’t get more exciting!

Source:

https://goo.gl/mwCJRp

https://goo.gl/M16sA7

Photo by Wikimedia Commons