The cryptocurrency ecosystem continues to expand as new investment products are continually introduced. The movement that began with a single digital currency, Bitcoin, has grown to include hundreds of other digital currencies with diverse initiatives and supporters. At the same time, traditional investment methods like futures contracts and derivatives are becoming increasingly popular as they are offered by both crypto-focused institutions and conventional banks.
However, there is frequently a divide between investors focused on the stock market and those interested in cryptocurrencies.
Now, that separation is being eradicated.
DX.Exchange is the first to offer real digital (tokenized) stocks, a product that blends the technological prowess of the cryptocurrency movement with the time-honored tradition of the stock market.
What Are Digital Stocks?
Investors wary of crypto market volatility have frequently turned to different variations of digital currencies to assuage their concerns. As a result, stable coins, asset-backed tokens, and CFDs have each become popular products in the crypto space. A digital stock is entirely different.
Digital stocks deploy blockchain technology and tokenization to traditional stock investments. In doing so, digital stocks are backed 1:1 to real-world shares that are bought and sold on stock exchanges.
To achieve this, DX.Exchange works with MPS MarketPlace Solutions, LTD. to attain the necessary amount of stock certificates to correspond to the activity on DX.Exchange. MPS utilizes smart contracts to create ERC20 tokens that are created on Ethereum’s network.
As a result, investors can now use cryptocurrency or fiat to purchase tokenized stocks that are divisible, sellable, tradeable in a simple and efficient p2p manner. Best of all, the entire process is maintained by the blockchain, bringing one of the most highly pursued technologies to bear on traditional stock investments.
Is This Process Secure?
When Facebook was innovating in the social media space, the company embraced the now infamous mantra “move fast and break things.”
Many innovators in the cryptocurrency space seem to have intrinsically adopted this ethos as well, and there has been no shortage of “broken things.” From exchange hacks to ICO scams, cryptocurrencies proliferation is frequently beset by problems associated with rapid innovation.
DX.Exchange is mitigating these concerns by partnering with established financial companies to ensure that their platform is safe and reliable. Specifically, the DX.Exchange is powered by NASDAQ’s matching engine that enables things like high-frequency trading and protects against market manipulation. This technology is used in over 70 markets, and it creates a safe, regulated environment for crypto traders to explore.
In addition, DX.Exchange is fully regulated by the EFIU, and is authorized to operate in Europe. That it stand out in today’s crypto economy clogged with dubiously regulated products.
To put it simply, DX.Exchange is offering an innovative new product, but they are supporting its implementation by partnering with trusted industry stalwarts to ensure that they don’t break things.
Stocks and Cryptos Don’t Need to Compete
Although it’s only a few years old, the cryptocurrency ecosystem is quickly expanding. Most of this growth is exciting and promising, offering investors an alternative to the traditional financial system.
Of course, with nearly 200 years of history, most people don’t want to shun the stock market entirely. Instead, they want a best of both worlds approach, something that is made possible by digital stocks. As DX.Exchange CEO, Daniel Skowronski, notes “The industry is very dynamic, and with new and exciting products such as digital stocks making their grand entrance, we’re confident that the hard work to perfect the trading experience will be well worth the effort.”
Indeed, digital stocks are a unique take on the investing experience, and they are the most contemporary and compressive expression of the modern investment ecosystem, bringing together the traditional and the contemporary in a single token.