DX.Exchange goes Live
In a much anticipated announcement, DX.Exchange has released a launch date for their platform. Through a brief video clip on their YouTube channel, we now know that this date is January 7th, 2019.
When launched, the online exchange will offer services facilitating trading of both cryptocurrencies and various other types of tokens. Users will be able to take part through various gateways, including FIAT.
How are they different?
What makes this exchange unique is their approach to digital securities. DX is taking traditional stocks such as Facebook, Tesla, etc., and issuing tokens representing a share within those companies.
What is interesting is that those companies have zero involvement in the process. Some refer to this as ‘third party tokenization’.
The tokens representing shares within those companies function similar to ‘stablecoins’. In other words, this means that each token is backed on a 1:1 basis with the respective stock.
Essentially, DX will purchase the stocks through traditional means, and sell them to investors. They, however, will hold onto the stocks, and give investors their digital tokens representing ownership.
Token holders are still entitled to dividends etc., normally seen through traditional investments.
How will this affect Digital Securities?
This unique approach to offering investors access to securities through tokenization may have an interesting effect on the market. With many companies racing to develop security token standards, and platforms to facilitate STOs, is it really needed?
While DX.Exchange is concentrating on publically listed companies for now, will this expand in the future?
If so, why would a company release their own tailored security token when they can allow the issuance process to be handled by a third party?
Time will tell.
Powered by NASDAQ
The upcoming exchange will be able to offer other unique features, such as after-hours trading. As a result, investors will be able to trade publicly listed companies 24/7.
Such services are made possible through the utilization of technology from NASDAQ, known as their ‘Matching Engine’.
DX.Exchange is based out of Estonia, and was founded in 2018. Above all, the company acts as an online exchange, providing investors access to a variety of assets.
They maintain multiple operating licences with the Estonian Financial Intelligence Unit. Where and how they operate, means that they do not fall within the purview of the SEC.
In a recent discussion with Bloomberg, Daniel Skowronski, CEO of DX, commented on the development. He stated, “We saw a huge market opportunity in tokenizing existing securities…We believe that this is the beginning of the traditional market’s merge with blockchain technology. This is going to open a whole new world of trading securities old and new alike.”
In their press release, Skowronski commented on the scope of the endeavour. He stated, “The crypto community has been talking about tokenizing assets for well over a year now without much progress, so we think the impact will be huge. Tokenizing securities is the first true use case where crypto collides with the real world 24 hours a day, 7 days a week. With fractional ownership and no leverage like CFDs, these new digital stocks are a more sound and safer investment that traders can take home in their wallet. This is the future of securities not just new issues but all the thousands of listed securities around the globe.”
Archax to Host Polymath Security Tokens on Upcoming Exchange
With the launch of Archax’s anticipated digital assets exchange looming large, the importance of populating listed assets is crucial. What better company to fill this need than Polymath? – a seasoned company already responsible for the tokenization of more assets than nearly anyone.
A mutual need was recognized between each company, resulting in the recently announced collaboration between the two.
This aforementioned collaboration will see Archax become home to assets tokenized through Polymath. In doing so, investors in these assets will finally be able to tap into higher levels of liquidity – a trait long touted as being key to digital securities.
Archax clients benefit through an increased selection of investment opportunities.
Polymath clients benefit by seeing their tokenized securities become more attractive through new found liquidity and exposure.
Upon announcing their newly established agreement, representatives from each, Archax and Polymath, took the time to comment. The following is what each had to say on the matter.
Graeme Moore, Head of Tokenization at Polymath, stated,
“At Polymath, partnership is part of our DNA. While we make it easy for firms to create and manage security tokens, we rely on the expertise of our partners for areas like secondary trading. We’re thrilled to work with Archax to provide security token issuers with an end-to-end solution for security token creation, management, distribution, and liquidity.”
Graham Rodford, CEO of Archax, stated,
“We are building the first truly global and institutional digital securities exchange based out of London and are looking to list credible token projects from across the world. Partnerships with leading players like Polymath ensure we are integrated into the emerging tokenisation ecosystem and we look forward to working with them and their clients, providing a secondary trading venue for tokens created using their technology.”
Beyond news of these companies working together, each have found themselves attracting attention in recent days, due to other activities.
Archax was a participant of the recently hosted Security Tokens Realised conference, which was hosted in London, UK. Our own CEO, Antoine Tardif, attended this event, coming away particularly impressed with a few companies – one of these being Archax, themselves.
Polymath, on the other hand, has recently given the public a glimpse at the functionality of their on-going Polymesh project. The company has high hopes for this blockchain, tailor-built for the digital securities sector.
Operating out of London, UK, Archax is an upcoming digital asset exchange, which was founded in 2018. With the exchange’s pending launch, the team behind Archax has been hard at work, establishing various partnerships to ensure an attractive platform.
CEO, Graham Rodford, currently oversees company operations.
One of the more recognizable names in digital securities, Polymath, is a tokenization platform which was founded in 2017. From their headquarters in Toronto, Canada, Polymath has assisted in the tokenization of over 150 assets to date.
CEO, Kevin North, currently oversees company operations.
A Pair of London Based Companies Find Common Ground with ‘Corda’
This newly established partnership was undertaken with the goal of providing clients of each, Archax and VALK, access to a suite of services enabling end-to-end issuance/trading of digital securities.
In order to enable this comprehensive suite of services, each company will bring something different to the table.
- VALK will facilitate the tokenization, issuance, and management of digital securities
- Archax will facilitate post trade activities and liquidity through access to secondary markets
What this means, is that digital securities created through VALK will have a home on the Archax Exchange. The result is that each company, and the respective digital securities, benefit greatly through the aforementioned capabilities.
Beyond their geographical location, there is one commonality between these two companies – use of the R3 Corda Platform.
As clients of R3 Corda, each, Archax and VALK, have access to an open-source DLT based platform, which enables to deployment of smart contracts.
In their partnership announcement, representatives from each, VALK and Archax, took the time to comment. The following is what they had to say on what this collaboration will mean, moving forward.
Antoine Loth and Elie Azzi, cofounders of VALK, stated,
“We are delighted to seal this partnership with Archax and look forward to being one of the first platforms on Corda to integrate with their exchange. Our clients will now have access to a gateway to liquidity and Archax can benefit from the incredible deal flow of our partners who are issuing, financing and trading very high-quality assets in the private equity, fund, infrastructure and real estate worlds. We are glad to be building the business interface between top performing and reputable institutional players and Archax, the most innovative market venue in the UK.”
Graham Rodford, CEO of Archax, stated,
“We are building the first truly global, institutional market for digital securities based in London. As such, we are keen to list the most credible token offerings – so partnerships like this one with VALK are highly relevant and important to us. Although we are blockchain agnostic in terms of the tokens that we list, we have partnered with R3 to use Corda for our own ledger and post-trade activities, so this collaboration with VALK, who use Corda too, makes a lot of sense. We are excited by the opportunity that the tokenisation of assets brings, and we look forward to working with VALK going forward.”
Speaking with Graham
In mid-2019, we were fortunate to have completed an exclusive interview with Archax CEO, Graham Rodford. Here, Rebecca Stoner, COO of securities.io, delves into what Archax hopes to accomplish and how they will achieve their goals.
Founded in 2018, VALK maintains headquarters in London, England. The team behind VALK has developed tech solutions which allow for the ‘management, trading, and investment of unlisted assets’.
Cofounder,s Antoine Loth and Elie Azzi, currently oversee company operations.
Founded in 2018, Archax maintains headquarters in London, England. Above all, the team at Archax is working to develop, and launch, an anticipated exchange, expected to serve the digital securities sector.
CEO, Graham Rodford, currently oversees company operations.
In Other News
While the launch of their digital securities exchange has taken longer to develop than originally anticipated, Archax remains one of the more anticipated projects in the sector. As such, we have found ourselves covering news pertaining to this young company on various occasions. The following are a few articles detailing what, exactly, Archax has been up to as of late.
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