DX.Exchange, which has offices in Israel and Estonia, is launching a MiFID-compliant exchange for round-the-clock trading of digital tokens representing liquid stocks. Explaining how it works, the company said that MPS MarketPlace Securities, under the Cyprus regulators’ aegis, purchases “real world” stocks in accordance to the token demand on DX.Exchange’s platform.
MPS generates smart contracts, ERC20 tokens, created on Ethereum’s network to represent those stocks. Each token is backed one-to-one with shares of real stock, held in a segregated account. Clients will need to file for MiFID II approvals.
DX.Exchange describes itself as the first complete crypto community that allows institutions and individuals to purchase cryptocurrencies with fiat, trade cryptocurrencies, and convert crypto back to fiat. DX.Exchange is being built on Nasdaq’s matching technology.