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DX.Exchange Adds Secondary Trading of Security Tokens

DX.Exchange at present is letting many firms list their security tokens before delivered on other boards. Institutional investors in Europe can get the tokens on the exchange for fiat, bitcoin, ether, tether, and XRP.

To begin with, only one such token will be listed on DX.Exchange. Finally, the exchange creator, Daniel Skowronski, informed a news website that the firm will provide its own equipment for asset tokenization; nonetheless, for now, it will ease the interchange of current security tokens.

As for the native token, 18 million IGWT will be offered in a closed security token offering (STO) for a limited time, and afterward, 10 percent of the company’s profits will be regularly distributed to the token holders, DX.Exchange pledged.

Currently, the platform is functioning in a closed regime for some 8,000 pre-registered users, Skowronski told CoinDesk, with the main launch planned for April. Users can currently trade 10 cryptocurrencies, including bitcoin, ether, litecoin, bitcoin cash, OmiseGo, XRP, and others.

Presently, the policy is operating in a closed regime for a few of the 8,000 pre-registered users, Skowronski said in his interview, with the foremost presentation deliberated for April. customers can presently trade 10 cryptocurrencies such as bitcoin, ether, litecoin, bitcoin cash, OmiseGo, XRP, and others.

“Our vision is to bridge the gap between the old world and the new digital world,” Skowronski said in a press release. “We believe that all assets, whether securities, art, or real estate, will be tokenized. This tokenization has many benefits but the strongest is the ability to help create wealth for people all over the world no matter their social economic situation.”

They can also trade and buy ERC-20 tokens backed by real-world securities, such as stocks of Tesla, Google, Facebook, Amazon, and 30 others. The stocks are bought and held by the brokerage MPS Marketplace Securities Ltd., registered in Cyprus.

“What’s great is that this is a real exchange. What’s out there currently is more like an OTC,” DX.Exchange’s CEO and co-founder Daniel Skowronski told The Block.

However, a few of the sources complicated in Europe’s STO market are not sure if the events go far enough. Running a genuine place for the interchange of securities needs manifold regulatory permissions. DX in Estonia nor MPS in Cyprus appear to have the normal consents required to run an exchange…The last thing this budding space requires is customers to be put at possible risk, says one.

“The market has been talking about security tokens for over a year, but unfortunately, there hasn’t been much progress. We believe all financial assets will be tokenized in time,” he said, noting that the firm hopes to offer all forms of securities on the exchange and will list those who have already done an STO.

Skowronski also elucidated that U.S. traders still do not succeed in purchasing or selling security tokens on the policy but are “totally compliant under European regulations” owing to its transaction with MPS MarketPlace Securities, which acts as a distributor.

Only pre-registered users can now access the platform, and Skowronski informed that those trading securities will be required to go over extra KYC procedures.

Aarav Ghosh: Aarav Ghosh is a sub editor and contributor to NameCoinNews who specializes in covering latest stories and headlines of cryptocurrencies and blockchain. Additionally, he also covers latest news related to FinTech industry. He is a firm believer of next big transformation of world economy in terms of digitalization.