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

Photo by Pexels.com

OKEx and MSX to launch a new platform for security tokens

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Today in Malta, OKEx the worlds largest cryptocurrency exchange by volume, has announced their partnership with MSX (Malta Stock Exchange). The both companies aim is to make Malta as the Blockchain Island. The partnership was formalized in the form of a Memorandum of Understanding (MoU) signed in Valletta, Malta on July 19, 2018.

The new exchange will be called “OKMSX” “and will leverage OKEx’s digital asset operations and security expertise, along with the Malta Stock Exchange’s 26-year track record of operating as a regulated stock exchange with extensive experience in regulatory compliance and client due diligence”, says in their announcement.

“Malta is taking the helm of regulating the blockchain technology and cultivating a regulated cryptocurrency and ICO epicentre. This joint venture marks our confidence in the Maltese government as well as our commitment to providing an efficient, secure, and transparent blockchain trading environment to clients worldwide. We believe OKMSX will be a milestone in the economic development of Malta,” said Tim Byun, Chief Risk Officer and Head of Government Relations of OKEx.

“Today Malta opened up a way for legally binding listing and trading of tokenized securities. We are proud of Malta Stock Exchange to enter a partnership with a worldwide leader in primary offerings on blockchain such as OKEx. I look forward to the fruitful collaboration in the future.” said the Honourable Silvio Schembri, Member of Parliament and the Junior Minister within the Office of the Prime Minister for Financial Services, Digital Economy and Innovation.

Source:

https://support.okex.com/hc/en-us/articles/360007668231

Revolut to become a commissionless stock exchange

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Today Revolut, a digital banking alternative that includes a pre-paid card, currency exchange, cryptocurrency exchange and peer to peer payments, announced their plans on making a stock trading platform without any fees, just like Robinhood in the U.S.. The app will offer stocks from public companies from U.S. And the U.K., as well as various ETFs and options. 

When it comes to traditional stock trading, it’s slow, costly and if you are using your existing bank you have to pay a commission to a broker. In other words it’s slow and expensive, which is the worst combination.

Revolut promises that you won’t pay any commission when you buy or sell shares. The company plans to make money on margin trading, securities lending and interest on cash. Unfortunately, Revolut didn’t say when the feature would launch.

Congrats to Revolut on such a big step, the Europeans have been waiting for this.

Source:

https://goo.gl/c574Qp

https://goo.gl/QwVtPi

Photo by Revolut