FTX Exchange has permitted its users to trade in US-based companies like Facebook, Google, Netflix, Nvidia and Tesla. The discussion comes after Binance and Bittrex had launched trading in tokenized stocks of Apple, Amazon, Coinbase and Tesla among others.
Switzerland-based Digital Assets AG (DAAG) has established nearly 55 such free-floating security tokens with underlying collateral of $100 million which specializes in the field of digital financial instruments. It will provide the stock infrastructure.
The tokenized stocks by DAAG will be transferred from a private blockchain to Solana, which the company has claimed to be more efficient as well as cost effective.
The corporate development lead of Digital Assets AG Brandon Williams stated, “There is no reason the settlement of a stock trade should take two days or a company going public should have to spend tens of millions of dollars to get listed on a national exchange.”
In simpler terms, despite of the fact that these stocks are only available on FTX as of now, they can be traded with any Solana blockchain built exchanges in the future such as the decentralized exchange called Serum.
Sam Bankman-Fried, FTX’s CEO added that the crypto exchange has always looked to provide cutting-edge products to its users and DAAG’s tokenized stock infrastructure would help out in facilitating a paradigm shift in the underlying market structure.
Additionally, FTX is not new to tokenized stock trade. In April, on the eve of the public listing of the company it had debuted the Coinbase’s pre-IPO (Initial Public Offering) contract on its platform.
