Nasdaq-powered digital trading platform DX.Exchange, which is based out of Estonia, is claiming an industry first with its launch of security token offering (STO) listings and security token trading.
As per the previous reports, DX.Exchange went live in January this year, with support for various cryptocurrency and fiat trading pairs as well as tokenized stocks. In March, the platform added tokenized ETFs to the list of its supported products.
The platform now allows investors to purchase security tokens using both fiat and major cryptocurrencies, as per the press release. These cryptocurrencies include Bitcoin, Tether, Ethereum, and Ripple. Subsequent to this latest development, DX Group will also supposedly restructure into a new unit called DXtech Exchange.
It is to be noted that trading of security tokens will purportedly require investors to undergo a supplementary layer of KYC checks. This is in compliance with the European Union Markets in Financial Instruments Directive II.
Furthermore, MPS will be the entity that lists the tokens and acts as a counterparty in their trading. All trades will be monitored by a surveillance system and automatically matched using matching engine technology.
In order to display its new services, DXtech Exchange launches Security Token Offering listing and trading for a security token dubbed IGWT. Notably, it will be offered in a time-limited private security token sale of 18 million IGWT. After that, 10% of the company’s profits will allegedly be regularly distributed to IGWT token holders that will own a hundred percent of the tokens.
The press release further outlines the eligibility necessities for listing a security token with DXtech Exchange. These requirements include evaluation by the platform’s investment committee, complete background vetting, the provision of a legal opinion, and review of the token’s blockchain protocol. This will also include providing DXtech exchange with data on to whom and how tokens are distributed.