Ethereum News: In a press release on Thursday, DX Exchange, an Estonian digital trading platform confirms their collaboration with Nasdaq and the launch of their first Ethereum based tokenized stocks regulated under European Union laws on January 7.
The Instrument will enable users to trade big-name stocks using tokens on the Ethereum blockchain via smart contracts. With a multi-way partnership, this newest offering will make DX the only exchange licensed to offer tokenized stock products in the EU. The release reads
“Digital stocks combine the best of both worlds: blockchain technology and traditional stock investments. Digital stocks are backed 1:1 to real-world stocks traded on conventional stock exchanges. You purchase tokens for leading assets that you choose to invest in, such as Google, Amazon, etc. Therefore, when you are a token holder, you own shares of the company.”
The exchange platform stressed that the product will similar to physical exposure, in contrast to trading contracts for difference (CFDs).
Nasdaq will be utilizing their Financial Information exchange (FIX) protocol, in line with the majority of US firms active in the market, to realize the project. The stocks to back the tokens will be acquired by “exclusive” partner MPS MarketPlace Securities Ltd. DX explains that the company “issues tokens that represent stocks on (the) Ethereum blockchain via smart contracts, and buys and holds real-world stocks according to demand,”
…The tokens offered for sale will be based on leading public company shares listed on the biggest exchanges like NASDAQ, NYSE, Hong Kong Exchange and Tokyo Stock Exchange.
Nasdaq plans to launch Bitcoin futures in the first half of this year and so does Bakkt, who is currently only awaiting for the necessary permissions to launch their newest product. With the market brimming with options, it is likely that institutional investors will venture into the ecosystem.