- Digital Asset AG (DAAG), a Swiss business, is issuing crypto tokens on the FTX cryptocurrency exchange.
- Around 55 free-floating security tokens, including those from Tesla, Google, Facebook, and Netflix, will be available for trading.
- These tokens can be transferred between any Solana blockchain-based exchange.
The FTX exchange in Hong Kong is following in the footsteps of Binance and Bittrex by enabling users to trade in US-based tokenised stocks such as Google, Facebook, Tesla, Netflix, and Nvidia.
Digital Assets AG (DAAG), a Swiss corporation that specialises in digital financial instruments, has created over 55 such free-floating security tokens with underlying collateral of $100 million.
The company says that moving DAAG's tokenized stocks from a private blockchain to Solana will be more efficient and cost effective. This means that, while these stocks are currently exclusively available on FTX, they will be exchanged on any Solana blockchain-based market in the future, such as the decentralised exchange Serum. FTX is no stranger to trading tokenized stocks. On the eve of Coinbase's public listing in April, it revealed the company's pre-IPO contract on its platform.
Americans may find it simple to purchase US firm stocks, but that is not the case for individuals living outside the nation. Furthermore, because of the time difference, an investor on the opposite side of the planet would have to remain up all night to trade.
Crypto tokens provide an alternative to investors who do not have quick or inexpensive access to US stocks. A cryptocurrency exchange such as FTX is open 24 hours a day, 365 days a year, with no market holidays.
Traders will be able to withdraw and deposit their tokens into their own crypto wallets — software tools that assist keep cryptocurrencies discreetly — rather than on cryptocurrency exchanges once they have purchased a stock.
If you buy crypto tokens instead of equities, do you still earn dividends?
Owning tokens, according to Binance, does not provide investors any shareholder rights. FTX and Bittrex, on the other hand, claim to be working to ensure that stockholders receive dividends, albeit this isn't a guarantee.
Who can invest in Google, Facebook, and other digital assets?
Unlike Binance, DAAG has received regulatory authorisation from the Liechtenstein Financial Market Authority to allow users in the European Economic Area (EEA) to trade on tokenised platforms. The EEA includes all countries in the European Union, as well as Iceland, Liechtenstein, Norway, and Croatia.
All jurisdictions, with the exception of the United States, Iran, North Korea, and Syria, are eligible to apply for tokenized stock access.
So, what exactly is Solana?
Anatoly Yakovenko, an ex-Qualcomm employee, founded the Solana platform in 2017. The goal of the blockchain is to solve the "impossible trinity" of decentralisation, security, and scalability. Only decentralisation and security are addressed by Ethereum, whereas scalability and security are addressed by Bitcoin. Neither of them is capable of resolving the entire trinity.
The storey has piqued the interest of investors, who are keen to see where it leads. The crypto firm raised $314 million earlier this month. Outside of initial coin offerings, it was the fourth-largest fundraising round in crypto history (ICOs).
Alameda Research, Blockchange Ventures, and others contributed to the round, which was led by venture capital companies Andreessen Horowitz and Polychain Capital.
