Nasdaq-powered platform DX.Exchange plans to support trading in listed companies

One of Nasdaq supported startups has announced intentions to allow direct buying of shared belong to various leading firms while utilizing a tokenized platform. The announcement was made on Wednesday 2 and indicated that the service is expected to go live on January 7.

The system has been designed in such a way that it gives the customers a chance to buy tokens that represent the shares of the companies listed on Nasdaq. In addition to that, the customers will be able to make a selection of digital assets and also fiat currencies to be used to buy the tokens.

The startup, DX.Exchange, based in Estonia has incorporated Nasdaq matching engine which it will use to support the exchange of securities and guard against various malpractices including price manipulation. The customers on DX.Exchange are not going will not own the shares directly, however, they will own the tokens that represent the shares of the companies. While speaking to CoinDesk, the chief operation officer (COO), Amedeo Moscato said:

“Henceforth, when they become a token holder, they own stocks or portions of the company’s stock, as the tokens are backed 1:1 to the real-world stocks. That makes them entitled to the same cash dividends that the stocks are worth.”

The exchange has made an agreement with MPS Marketplace Ltd which allows it to purchase the real stocks from the firms and later develop ERC-20 tokens in the same measure. These real stocks will not be stored together with other funds belonging to MPS. This is to ensure that they guard against the company filing for bankruptcy. Moreover, the firm will work under the regulation of the Cyprus Securities and Exchange Commission. At the same time, DX.Exchange will be required to obey the rules set by the European Union. In the beginning, MPS has said that it will purchase shares belonging to:

“AlphaBet, Apple, Amazon.com, Facebook, Microsoft Corporation, Tesla, Netflix, Baidu, Intel Corporation and Nvidia.”

DX.Exchange is also expected to release a peer-to-peer crypto exchange platform in addition to the partnership with Bloomberg’s crypto center.