Token Exchange to Enable Trading of Nasdaq-Listed Companies

A Nasdaq-powered crypto startup plans to let its clients indirectly purchase shares of major firms through a token-based platform.

Estonia-based DX.Exchange announced Thursday that it would launch its trading platform on Jan. 7, allowing its clients to purchase crypto tokens representing shares in different tech firms listed on the Nasdaq exchange.

Customers will be able to use select cryptocurrencies, as well as fiat currencies to purchase the tokens.

The company will use Nasdaq's matching engine to facilitate the trading of digital securities, as well as protect against market manipulation.

DX.Exchange customers will not be purchasing ownership of shares directly, but rather, will purchase tokens which represent shares in a company, COO Amedeo Moscato told CoinDesk.

"Henceforth, when they become a token holder, they own stocks or portions of the company's stock, as the tokens are backed 1:1 to the real-world stocks. That makes them entitled to the same cash dividends that the stocks are worth," he explained.

MPS Marketplace Securities, Ltd, which DX.Exchange has an agreement with, will purchase the real-world stocks based on customer demand, and generate ERC-20 tokens to represent each share.

MPS will fall under the supervision of the Cyprus Securities and Exchange Commission, while DX.Exchange will abide by European Union regulations and authorities.

In addition to the matching engine, the platform is using Nasdaq's financial information exchange protocol, which is a standard used by a number of options securities trading firms in the U.S. The protocol defines electronic message exchanges for two parties conducting securities transactions.

In addition to its stock services, DX.Exchange will offer peer-to-peer crypto trading.