Security markers to bring the Blockchain technology to the light of the realm
One of the most promising recent developments in the blockchain space concerns the placement of bonds, stocks and other securities on the blockchain. These security tokens are part of a larger project known as tokenization. Tokenization simply means converting real-world resources into digital tokens. Using virtual registers, companies are now converting traditional tradable resources into digital assets.
Dx.Exchange, a company based in Estonia, announced Monday that it has created a trading platform that will allow investors to buy shares from major companies such as Apple, Tesla, Netflix, Facebook, etc. Using security tokens. Tokens are individually supported by a share. So buying them will give them cash dividends. The managing director of Dx, Amedeo Moscato, said:
"The cryptocurrency community has taken security tokens for a while without making significant progress in this sense, so we believe that we will influence the industry with this platform. some of the largest companies in the world open an untapped market of unlimited possibilities Millions of existing and new operators are free to participate in this new market, and the use of blockchain technology excludes intermediaries ".
On this platform, investors will be able to perform operations 24 hours a day, 7 days a week, even when markets are closed for the day. All day trading is more liquid and cheaper for traders according to Dan Doney, the co-founder of Securrency. While Doney praised the platform, he showed concern over regulations. In his words:
"We are not sure that this DX.Exchange model will sit well with regulators, we do not think that they would allow the tokenisation of real-world actions without the consent of shareholders, if executed correctly, we believe the project can be adapted to regulatory standards."
The advocates of tokenization believe that the tokenisation of actions will be a turning point in the cryptocurrency sector. It will also reduce the cost associated with stock market listings by making stocks more accessible to traders. Traders will be able to trade goods that are not too liquid like private equity.
While it is still in its early stages, many experts are certain that tokenization will be a trend in the third quarter of 2019. An expert who is a global director and partner of Autonomous Research, Lex Soklin, said this:
"Regarding the timing, we believe that the STO market will be the trend towards the middle of 2019. It will enter the market".