Security token trading platform DX.Exchange, which rose to fame this year after launching tokenized stocks and ETFs trading, today said that effective today any eligible security token can submit an application to get listed on its platform.
For an exchange widely publicized as offering big-name stocks on a blockchain-based contract, the Estonian startup said all tokenized securities must be compatible with ESMA’s latest guidelines and the MiFID II rules. With this module, the DX Exchange received a mainstream interest by crypto enthusiasts across the world.
DX.Exchange also revealed that virtual stocks traded on its platform can be split and offered in fractional tokens, which enables users to build diverse portfolios with low costs and in smaller values. The fractional trading feature also eliminates the barriers that many investors face when trying to invest in a diversified portfolio of listed securities. This most often is the case with high-priced stocks like Amazon or Alphabet.
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The official announcement reads it as follows;
“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 for the US STOs, the virtual assets will be tokenized using the Ethereum blockchain and backed by real-world stocks bought and held by Cyprus-based DX.Exchange’s partner MPS MarketPlace Securities Ltd.
Showcasing IGWT Token
To realize the project, the DX Group has restructured into a new entity called DXtech Exchange and will launch the first security token offering on the platform, dubbed “IGWT.” DX.Exchange, which has offices in Estonia and Israel, said the IGWT token will be offered in an exclusive private security token sale and will regularly distribute 10% of the whole group company profits.
DX.Exchange has drawn interest for its free trading model, with only a 10 EUR monthly fee for their Lite account. To launch, the company has secured an Estonian license, as well as a market maker license from the Cypriot regulator, which is another advantage the exchange has to offer.