- The Switzerland-based company Digital Asset AG (DAAG) brings crypto tokens to the market via the FTX crypto exchange.
- Around 55 free-floating security tokens are available for sale, including those from Tesla, Google, Facebook and Netflix.
- These tokens can be moved between any exchange based on the Solana blockchain.
The Hong Kong-based FTX exchange is following the lead of Binance and Bittrex by allowing its users to trade US-based tokenized stocks – including Google, Facebook, Tesla, Netflix and Nvidia.
Around 55 such free-floating security tokens – with underlying collateral of $ 100 million – were launched by Switzerland-based Digital Assets AG (DAAG), which specializes in digital financial instruments.
DAAG’s tokenized shares are being moved to Solana by a private blockchain, which the company claims is more efficient and less expensive.
“There’s no reason a stock trade should take two days to clear or that a company that goes public should spend tens of millions of dollars to get listed on a national exchange.”
Brandon Williams, director of corporate development for DAAG, said in a statement
This means that even if these stocks are currently only available on FTX, in the future they can be traded on all exchanges that are built on the Solana blockchain, such as the decentralized exchange Serum.
And FTX is no stranger to tokenized stock trading. On the eve of the company’s listing in April, Coinbase’s pre-IPO deal was unveiled on its platform.
Why buy crypto tokens for business when you can buy the real stocks?
It may be easy for Americans to buy stocks in US companies, but that’s not the case for those living outside the country. And the time difference also means that an investor on the other side of the world would have to stay up all night to trade.
Crypto tokens offer an alternative solution for investors who do not have easy or cheap access to US stocks. A crypto exchange like FTX is open 24 hours a day, 365 days a year – no market holidays.
Once a stock is purchased, traders can withdraw their tokens and then deposit them into their own crypto wallets – software programs that help keep cryptocurrencies private – rather than on cryptocurrency exchanges.
Are you still getting dividends when you own crypto tokens instead of actual stocks?
According to Binance, ownership of tokens does not confer shareholder rights to investors. However, FTX and Bittrex claim that they are trying to make sure shareholders receive dividends – which is still not a guarantee.
Who Can Buy Google, Facebook, and Other Crypto Stocks?
In contrast to Binance, the DAAG has official approval from the Liechtenstein Financial Market Authority for users in the European Economic Area (EEA) – which includes all countries of the European Union as well as Iceland, Liechtenstein, Norway and Croatia – for trading on tokenized platforms.
In fact, all jurisdictions except the United States, Iran, North Korea, and Syria can request access to tokenized stocks.
What is Solana?
The Solana platform was launched in 2017 by former Qualcomm employee Anatoly Yakovenko. The blockchain aims to solve the “impossible triangle” of the blockchain – decentralization, security and scalability.
Ethereum is only concerned with decentralization and security, while Bitcoin offers scalability and security. Neither of the two dissolves the full trinity.
And investors are excited to see where the story will lead. Earlier this month, the crypto startup recently raised $ 314 million. It was the fourth largest fundraising round in crypto history outside of Initial Coin Offerings (ICOs).
Venture capital firms Andreessen Horowitz and Polychain Capital led the increase, with additional contributions from Alameda Research, Blockchange Ventures, and others.
For a more in-depth discussion, visit Business Insider Cryptosphere – a forum where users can dive deep into everything related to crypto, have interesting discussions, and stay up to date.
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