Nasdaq-Powered EU Digital Exchange
DX Launches Security Token Trading
DX.Exchange is declaring a market first with its launch of security token trading and security token offering listings. Estonia-based Nasdaq-powered digital trading platform DX.Exchange is claiming an industry first with its launch of security token trading and security token offering (STO) listings. The development was shown Cointelegraph in a news release on March 14.
As formerly reported, DX.Exchange went live in January, with support for various fiat and cryptocurrency trading pairs and tokenized stocks. In March, the platform added tokenized exchange-traded funds (ETFs) to its supported products.
According to the press release, the platform now enables investors to acquire security tokens utilizing both fiat and major cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Tether (USDT) and Ripple (XRP). Following this newest development, DX Group will likewise apparently reorganize into a new entity called DXtech Exchange.
Security token trading represents the latest offering made possible for DXtech Exchange's existing partnership arrangement with Cyprus-regulated broker MPS MarketPlace Securities Ltd., which has so far made it possible for the platform's provision of tokenized stocks and ETFs.
Trading of security tokens will apparently require investors to go through an extra layer of Know Your Customer checks, in compliance with the European Union Markets in Financial Instruments Directive II. MPS will be the entity that lists the tokens and functions as a counterparty in their trading. All trades will be instantly matched using matching engine innovation and kept track of by a monitoring system.
To demonstrate its brand-new services, DXtech Exchange launch STO listing and trading for a security token dubbed IGWT, which will be used in a time-limited private security token sale of 18 million IGWT. Afterwards, 10 percent of the business's revenues will reportedly be routinely dispersed to IGWT token holders that will own 100 percent of the tokens.
The press release describes the eligibility requirements for listing a security token with DXtech Exchange, that includes examination by the platform's investment committee, the provision of a legal opinion, full background vetting, an evaluation of the token's blockchain procedure and offering DXtech exchange with information on to whom and how tokens are distributed.
The platform's financial investment committee reportedly examines security token companies on the basis of their white paper's transparency, fundraising techniques and team involved. The news release specifies that the platform ultimately intends to list numerous security tokens consisting of company shares, company revenue divides, funds, bonds, realty and art.
As security tokens continue to get market traction, leading crypto exchange Binance is also eyeing the sector, signing an MoU last fall with the Malta Stock Exchange's fintech and digital asset subsidiary, MSX PLC to jointly release a new security token digital exchange.
Who is DX.Exchange?
DX.Exchange is the first complete Digital Asset Exchange that allows institutions and individuals to Buy & Sell Cryptocurrencies, Digital Stocks and Digital ETF’s with crypto or fiat. DX was built on Nasdaq’s market leading matching engine and market surveillance technology. The vision is to help create wealth for people all over the world no matter their social economic situation. Now trading the untradeable and banking the unbankable is a real possible.