Ethereum's ERC20 tokens to be used to tokenise and exchange FANG and other stocks after hours

DX.Exchange, a community-based exchange, has now made it possible to trade in securities such as Tesla, Apple, Facebook, among others via tokenization using ERC20 tokens on the Ethereum network. The exchange has announced that these services will be launched on January 7, 2019 and this will be the first time that the securities can be purchased with Bitcoin [BTC] and other cryptocurrencies.

This will test the virtual stock market among users who previously were not equipped to buy US-based stocks and test these new waters. Another positive aspect of the tokenisation of stocks is that users can trade these stocks even after the closure of the actual markets, and also buy portions of shares, which were previously not possible.

The CEO of the exchange, Daniel Skowronski, said:

"We have seen a huge market opportunity in the management of existing securities, and we believe that this is the beginning of the merger of the traditional market with blockchain technology, which will open up a whole new world of trading old and new stocks at the same way. "

In addition, MPS Market Place will keep these stocks in a 1: 1 ratio against these physical activities, which is similar to the functionality of the stablecoins, but they use stocks instead of fiat money as a peg.

The exchange has offices in Estonia and Israel and states that it is fully regulated by the Estonian financial intelligence unit and that they have full authorization to operate in the European Union. Furthermore, the exchange would be the Nasdaq Matching Engine technology, as reported by Bloomberg.

The exchange also confirmed on Twitter that DigiByte [DGB] it will be a cryptocurrency that can be used to purchase the aforementioned shares. The exchange must confirm whether other cryptocurrencies like XRP and BTC can be used.

Stephen Palley, a well-known crypto-community character and a lawyer, tweeted the exchange by saying:

"Yes, I'm going to send money to a regulated Estonian and Cypriot exchange and get ERC-20 tokens that represent shares but they are not stocks and sure they are not CFDs they also sell guppy sounds that are legitimate, what could go wrong"

In a subsequent tweet, he said:

"Look, even if it's entirely legitimate, he could be, I know – good luck to settle your disputes in Estonia if you are, you know, not in Estonia."