The lines between cryptocurrency and real world stocks are set to be blurred forever with the imminent launch of a brand new digital exchange.
DX.Exchange, set to launch on January 7th will allow customers to buy Ethereum ERC20 tokens that represent real-world Nasdaq-listed company shares on a 1:1 basis.
In what is surely a bullish development for the cryptocurrency landscape as a whole, customers will be entitled to the same cash dividends as with actual shares, but benefit from the speedy settlement, transfer and portability of cryptocurrency tokens.
It is expected that several huge corporations will have shares listed on the new exchange, including Apple Inc, Facebook Inc and Tesla Inc. Because traders are actually buying crypto tokens rather than actual shares, they will also be able to trade outside of US after-trading hours.
DX.Exchange’s CEO Daniel Skowronski explained to Bloomberg why the launch could be a key turning point for the cryptocurrency market: “We saw a huge market opportunity in tokenizing existing securities. We believe that this is the beginning of the traditional market’s merge with blockchain technology.
“This is going to open a whole new world of trading securities old and new alike.”
The exchange is also the first in the world to allow traders to buy securities that are not Contracts for Difference (CFDs) directly with other cryptocurrency tokens.
In an official press release, Skowronski commented: “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, 7 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.”