In this edition of The Daily we cover a regulated exchange that is starting to list security tokens, a new tool for accountants serving cryptocurrency users, and Coinbase linking its platform and wallet app in addition to adding XLM trading on Coinbase Pro.
DX Exchange to List STOs
DX Exchange, an Estonia-based venue which developed trading on tokenized stocks and ETFs, has announced that the platform is also starting to list security token offerings (STOs). Institutional and professional traders will have access to security tokens which can be purchased with both fiat and popular cryptocurrencies. Getting access to security token will require an additional layer of Know Your Customer (KYC) checks for the exchange’s users. As this KYC process is MiFID II compliant, it opens the doors to security token trading for professional investors.
DX’s partner company, MPS Marketplace Securities Ltd, will act as a counterparty for all security token trading on the platform. When there’s a trade match in the order book, MPS will buy from one client and sell to the other, taking accountability for trade clearing. All trades will be monitored by a surveillance system.
Any security token can submit an application to become listed, and will need to meet eligibility requirements for listing on the exchange. The potential issuers will be evaluated according to their achievements, transparency, fundraising method, and management team. DX will also require a legal opinion which supports the STO’s legitimacy, and it shall perform background checks on the management team and directors. For each security token which will be offered, a whitepaper explaining the conditions,