DX.Exchange was on rich bulletins this year with the launch of stocks and ETF trading. It is a crypto platform from Estonia and has today announced the launch of its own security token.
Secondary Trading of Security Tokens
Per the announcement, the exchange is allowing the secondary trading of security tokens via its platform, means that the companies can list their security tokens on DX.Exchange which had previously issued on other platforms.
Moreover, the platform is launching its own native security token called IGWT token since it is on-boarding the security token trading for institutional investors. Consequently, such professional and institutional investors can buy security tokens on the exchange for fiat, Bitcoin (BTC), Ethereum (ETH), Tether (USDT) and XRP. Moreover, in the near future, the firm will introduce its own technology for asset tokenization.
“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.”
As confirmed at the Token2049 conference (held on March 13 and 14 in Hong Kong), the listing of security token will begin this week –Such security token listing and trading would be the first of its kind in cryptocurrency exchange platforms. However, the service would be specifically for professional and verified institutional investors but remained unavailable for retail investors.
DX.Exchange Launches Security Token
So-Called IGWT native token is an acronym for ‘In God We Trust’ which will enable firms to raise money. Initially, 18 million IGWT tokens will be released and sold privately, holding 10 percent as the company’s profit which will be distributed to the token holders regularly.
The firm will most likely launch the platform in April this year but at the moment it is operating its services with approximately 8000 pre-registered users. DX.Exchange is partnered with MPS Marketplace Securities Ltd registered in Cyprus. As per the announcement, US STOs will be tokenized vie Ethereum blockchain and ERC-20 backed Real-world stocks which are bought and held by DX.Exchange’s brokerage MPS MarketPlace Securities Ltd.
Moreover, the platform isn’t planning to offer its services to the U.S service due to the country’s regulatory issues. DE.Exchange’s co-founder Daniel Skowronski further notes that;
“Our vision is to bridge the gap between the old world and the new digital world. We believe that all assets whether its 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.”