Blockchain Technology Will Get A Major Boost From Tesla And Apple Shares

The blockchain industry is still in its infancy. However, there are unlimited use cases of the technology that will guarantee its position in the fourth industrial revolution. Big tech companies like Apple, Tesla and many more are beginning to recognize this fact and their share in the industry will boost the adoption of blockchain technology a great deal. At a glance, the fall in the price of BTC and other cryptocurrencies spells doom for the market. When you take a critical look at the industry and you put some fairly new developments into consideration, you’ll realize that blockchain technology is not going anywhere anytime soon.

Security Tokens To Bring Blockchain Technology To The Realm Light

One of the most promising recent developments in the blockchain space has to do with putting bonds, stocks and other securities on the blockchain. These security tokens are part of a broader project known as tokenization. Tokenization simply means converting real world assets into digital tokens. Using virtual ledgers, companies are now converting traditional tradable assets into digital assets.
Dx.Exchange, a firm based in Estonia, announced on Monday, that it has created a trading platform that will allow investors to buy shares from major companies like Apple, Tesla, Netflix, Facebook, etc., using security tokens. The tokens are individually backed by a share. So buying them will give them cash dividends. The chief operating officer at Dx, Amedeo Moscato, said:

“The cryptocurrency community has been considering security tokens for a while now without making significant progress in this regard. So, we believe we will impact the industry with this platform. Tokenization of stocks from some of the largest firms in the world opens up an untapped market of limitless possibilities. Millions of existing and new traders are free to participate in this new market. What’s more, using blockchain technology cuts out the intermediaries.”

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On this platform, investors will be able to perform trades 24/7 even when the markets have closed for the day. Around the clock trading is more liquid and more convenient for traders according to Dan Doney, the co-founder of Securrency. While Doney commended the platform, he showed concern about regulations. In his words:

“We are not sure if this model by DX.Exchange is going to sit well with regulators. We don’t think they would allow the tokenization of real world shares without the consent of shareholders. If executed properly, we believe the project can be made to fit regulatory standards.”

DX.Exchange said that it’s digital stocks fall under the derivative category. They also stated that the trading platform is fully regulated by Mifid II directive from the European Union. This group aims to protect investors while increasing trust and transparency in the industry.
Proponents of tokenization believe that stock tokenization is going to be a game changer in the cryptocurrency industry. Also, it will reduce the cost attached to stock market listings making shares more accessible to traders. Traders will be able to comfortably trade assets that aren’t too liquid like private equity.

While it is still in its early stages, many experts are certain that tokenization will be a trend in the third quarter of 2019. One expert who is a global director and partner of Autonomous Research, Lex Soklin, had this to say:
“Regarding timing, we believe that the STO market will be the trend in mid 2019. It is going to ramp into the market.”


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