DX.Exchange, which shot to fame after launching tokenized stock and ETF trading earlier this year, has moved a step forward with its plan to include more security token on its platform. Effective today, any eligible security token can submit an application and get listed on the platform.
As per the Estonian startup, all tokenized securities must be compatible with ESMA’s guidelines and the MiFID II rules. With this structure, the exchange is targeting mainstream interest by crypto enthusiasts across the world. The exchange started offering tokenized security big-stocks like Amazon, Alphabet on a blockchain-based contract.
As per the exchange, the tokenized securities or the virtual stocks can be split and offered in fractional tokens, allowing users to build diverse portfolios with lower costs and in smaller values. This allows users to buy high-priced stocks like Amazon or Alphabet at a fraction of cost, thus providing more access.
The official statement by DX.Exchange reads: “Now, blockchain and crypto entrepreneurs are looking at raising funds via Security Token Offerings (STOs). STOs are swiftly replacing ICOs. The noticeable shift is largely driven by softening demand from retail investors for ICOs, due to lack of investor confidence.”
All US STOs, the digital asset will be tokenized with the help of Ethereum blockchain and will be backed by real-world stocks that will be held by DX.Exchange’s partner MPS MarketPlace Securities Ltd.
In order to make the project successful, the DX Group has restructured into a new entity called DXtech Exchange and will launch the first security token offering on the platform, dubbed IGWT. The IGWT token will be offered in an exclusive private security token and will regularly distribute 10 per cent of the whole group company profits.