Estonia’s DX.Exchange Offers Secondary Market for Security Tokens
DX.Exchange has opened its platform with calls to trade security tokens, in one of Europe’s first attempts to offer a secondary market for the new type of asset.
DX.Exchange has opened its markets for the issuers of security tokens, offering one of Europe’s first platforms for secondary liquidity. With this, the Estonian market operator, powered by NASDAQ’s platform, lines up with platforms like Extauri and Neufund, who are also revving up their trading engines for the upcoming security tokens.
The exchange opened this January, and has issued its own security token. The market trades several leading digital coins, and also offers derivatives based on leading tech stocks. But the newly traded assets are giving hopes that the security token sector will finally pick up in 2019.
One of the goals of DX.Exchange is to democratize trading. According to the co-founder and CEO Daniel Skowronski, converting traditional assets to digital coins can allow a new wave of investors to participate.
“We class ourselves as a digital asset exchange and believe that everything will look like this in 2-5 years. We’re opening up the entire financial world industry as a whole and servicing this bottom set of people that have been sorely missed before. Now you can buy as little as ten dollars of a share, instead of having the full amount which a lot of people simply can’t afford,” Skowronski said in a Forbes interview.
In effect, the exchange now offers security tokens based on well-known companies. But the website also bears an invitation to new STO projects. For now, STO token sales have been limited, and the handful of European and US-based markets will have to prove they will be liquid.
“We now offer every eligible company in the industry the possibility to take its business global, by connecting the old financial world with the new digital asset marketplace. DX offers a one-stop shop for established businesses, startups, and real-world assets to become tradeable securities. This is a true definition of blockchain utility, and the dawn of the Digital Asset Revolution,” DX.Exchange announced on its site.
The exchange is fully legalized under MiFIDII laws and is ESMA-compliant. The project has also opened an STO platform, where investors can buy the newly issued security tokens either with cryptocurrencies or with leading fiat currencies. DX.Exchange uses the NASDAQ trading and matching engine, allowing for the trade of multiple STO assets with no downtime.