Could we soon see Apple and Google shares on the blockchain?
Many in the industry are saying yes!
Analysts are increasingly saying that security tokens may be what ends up reinvigorating the space.
Security tokens would put securities like stocks and bonds on the blockchain.
The idea is to turn real world assets, like stocks (or anything really) into digital tokens.
How would this happen?
Likely through an STO (security token offering), though there are other ways as well.
ICOs raised a considerable amount of money in 2017, though that avenue has mostly dried up due to market saturation, regulatory concerns, as well as many fraudulent activities and outright scams.
One of the main differences with STOs is that these security tokens are actually asset-backed and fall within regulatory parameters.
Many people are envisioning a world where just about everything will eventually be tokenized and therefore tradable/transferable.
(Source: https://hackernoon.com/the-security-token-thesis-4c5904761063?gi=3ecb8cfba862)
Becoming a reality?
Security tokens have been talked about for some time now, but on Monday a firm took a major step in making this a reality...
Yesterday, DX.Exchange, an Estonia-based crypto firm, launched a trading platform that lets investors buy shares of Apple, Tesla, Facebook, and Netflix (among others) indirectly through security tokens.
Each token is backed by one share of the company's common stock.
Investors that may not be able to purchase Apple stock directly can now gain exposure indirectly through security tokens.
This is an important development for investors living outside the US.
There may be some regulatory concerns that haven't been answered just yet regarding DX.Exchnge, however, they claim that these tokens are simply derivatives of the Nasdaq listed equities and have gained the necessary regulatory approval.
Interesting to see how things continue to develop in this space.
Stay informed my friends.
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