Estonian digital trading platform DX.Exchange has added the largest exchange-traded funds to its list of Ethereum-based tokenised assets.
Investors in the European Union and a number of other countries can now buy and sell 15 of the most popular ETFs using cryptocurrencies, including SPY – which tracks the S&P 500 – and UDOW – which provides 3x leveraged exposure to the Dow Jones Industrial Average. The move adds to the growing list of traditional financial assets that are being tokenised on the blockchain.
Before the new listings were announced, users were able to trade cryptocurrencies and a select number of tokenised stocks, including Tesla (TSLA), Netflix (NFLX), Microsoft (MSFT) and Nvidia (NVDA).
The exchange is regulated by the European Securities and Markets Authority, and is therefore available to users in around 170 countries. The company plans to expand its services and open trading to US-based customers in 2019, according to CEO Daniel Skowronski.
In a press release sent to Cointelegraph on Wednesday, COO of DX.Exchange Amadeo Moscasto explained:
“As of today, there’s over 130 Billion USD worth of Crypto that can now be invested in Digital Stocks and ETFs. Crypto investors who wished to hedge part of their crypto portfolio had only USD stable coins or limited options. Now they can invest in real world assets on the blockchain.”
Each security listed on DX.Exchange is an ERC-20 token – a smart contract – based on the Ethereum network. Each token is backed 1:1 by a share of real stock, which is purchased and held by trust holder MPS Marketplace Securities Ltd., under the supervision of the Cyprus regulator, CySEC.