Security tokens that are backed up by actual shares in companies like Netflix, Tesla and Amazon are now available for trading, but its existence has been met with some doubts. CEO Dan Doney from fintech firm Securrency told CNBC that he’s unsure and ‘even skeptical’ about the business DX Exchange has gotten into. He believes it isn’t acceptable to ‘list tokenized shares of a company without shareholder consent’.
Doney did add that he believes that the business model can meet regulatory standards when it’s executed properly. DX Exchange is based in Estonia, and has a regulated license from the European Union to run its business. The exchange allows cryptocurrency investors to use their digital money to invest in companies like Tesla, Netflix, Amazon, Apple and Microsoft.
“The crypto community has been talking about security tokens for well over a year now without much progress, so we think the impact will be huge,” Amedeo Moscato, DX’s chief operating officer told CNBC. DX Exchange is opening up access to stocks for millions of traders that never had access to this type of products.
The digital stocks that are issued by DX, are classed as derivatives. The underlying asset is an equity of ten Nasdaq-listed firms. Its platform follows the Mifid II regulations from the European Union. MPS MarketPlace Securities on Cyprus is keeping the stocks in a physical safe. By all means, the product that DX Exchange is offering, are security tokens.
DX Exchange opened its trading platform on January 7th. They call the opening and ‘soft launch’. Currently not all pairs and deposit options are fully available. Within two weeks DX expects to be fully operational.
Also published on Medium.