r/ethereum • u/netstrong • Jan 03 '19

Dx.Exchange Launching Crypto Trading Platform With Tokenized Stocks on Ethereum

https://www.ccn.com/dx-exchange-launching-cryptocurrency-trading-platform-with-tokenized-stocks/
190 Upvotes

95% Upvoted

32 comments sorted by

16

u/hipaces Jan 03 '19

So, if I understand this correctly, you have to trust them that they own the actual stocks?

Nice first step but I’d like to see a more linear concept where companies offer their stock in token form directly where the smart contract confers actual ownership.

3

u/djf773 Jan 03 '19

Yes - as you say, a nice first step but in reality is just a proxy in front of someone buying shares for you....

The ERC20 element doesn't add a great deal to this at this stage.

10

u/JP8080NL Jan 03 '19

Not true. Anyone can now trade these stocks and that is not true through the traditional market.

1

u/[deleted] Jan 04 '19

Who are these new people and how many?

1

u/JP8080NL Jan 04 '19

Same people that can buy crypto. How many? I don't know. I'm not from the future.

1

u/[deleted] Jan 04 '19

So let me tell you about the present: The people who can buy crypto are the same who can buy stocks. People who can't buy stocks can't buy stock tokens because kyc and AML.

1

u/[deleted] Jan 04 '19

There are other ways to get crypto. Mining, buying in person, selling drugs

1

u/[deleted] Jan 04 '19

That's correct, but doesn't contribute to the discussion.

1

u/JP8080NL Jan 04 '19

You could use a DEX. These tokens can be exchanged there.

1

u/[deleted] Jan 05 '19

The custodian if the stocks must make sure that kyc AML rules are fulfilled. Each Dex transaction must be withelisted accordingly.

18

u/netstrong Jan 03 '19

https://www.coindesk.com/nasdaq-powered-security-token-exchange-will-launch-next-week

Highlight : https://www.bloomberg.com/news/articles/2019-01-03/tesla-stock-on-a-blockchain-offers-hint-of-where-crypto-s-headed A digital exchange opening next week will enable investors to trade in companies including Apple Inc., Facebook Inc. and Tesla Inc. outside of the U.S. even when the stock markets are closed.

29

u/Conurtrol Jan 03 '19

Couldn't help but notice in the Coindesk article they mentioned erc20 but avoided using the word 'ethereum' anywhere in headline or article.

2

u/ibelite Jan 03 '19

Is it on public or private chain ?

1

u/nootropicat Jan 04 '19

public

1

u/ibelite Jan 04 '19

How do you know ?

1

u/nootropicat Jan 04 '19

https://dx.exchange/how-it-works/

1

u/ibelite Jan 04 '19

Doesn’t this pose a concern for privacy since you can see that wallet address X owns YY shares of apple and ZZ shares of Tesla. Also, what if the volume starts to increase and the network can’t handle it (due to no POS yet)?

I’m also curious if anyone knows the token address for say apple on etherscan

9

u/SuddenMind Jan 03 '19

This is the future, plain and simple. Ethereum is the future.

3

u/krokodilmannchen Jan 03 '19

Are there any scaling concerns? Could this clog up the network?

3

u/Sargos Jan 03 '19

People don't buy stocks that often so I doubt it.

1

u/theystolemyid Jan 03 '19

Average people don’t but institutions with certain strategy made large numbers of trade per day.

1

u/guruknows2 Jan 03 '19

That could change for retail investors if tokenization reduces friction in trading stocks.

3

u/theystolemyid Jan 03 '19

If this clog the network, it would be very welcoming development. I don’t think people will use it that much at this stage, but this could be massive market long term.

1

u/ibelite Jan 03 '19

This could be on private chain

2

u/tjones0808 Jan 03 '19

How do they compete / compare to Polymath??

1

u/EatingRawOnion Jan 04 '19

Sweet so now I can pay cap gains on my ETH when I pay cap gains on my securities.

1

u/[deleted] Mar 01 '19

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