Bitcoin Forum

A news a while ago releases that DX. Exchange plans to offer digital versions of big U.S. stocks. Others believe that this is the beginning of the traditional market’s merge with blockchain technology but some people thinks about it in a negative way. What are your thoughts about this news?  ???

It's really not decentralized, because you still have to trust a middleman, but hey. Though it's definitely not for everyone, having the option to invest in "tokenized" versions of stocks is a good thing in my opinion; I just hope that people know how it actually works before throwing their money into it. In this case, it's pretty much just the case of, if you don't like it, then don't buy it.

Will I be using it? I really don't know. I'd have to do some research on DX if they really actually are trustworthy enough or not.

I think this will have to go through approval and some strict regulations. I hope this is not another game plan to milk the struggling  market. I really don't trust all these government backed assets merger with the Crypto market.

I really think this is Tokenization or Data security has been used in different transaction right now and by means of tokenizing some assets would sure have a fast pace kind of transaction but it doesn't really mean that it is now decentralized because they are still using providers of services and required a number of entities working together to deliver an alternative payment system.

This could be a step for people that are not using the blockchain system and think further in experiencing a new way in a fast transaction or could open up a path for them in accepting decentralized transactions.

This is just another version of derivatives for the US stocks, using the term 'digitization' to make it look appealing and fresh to the public. While I've nothing against the development of cryptocurrencies, blockchain and the financial system in general, it seems to me that the capitalists are piggybacking the fame of the said tech to garner more interest and support on their already-dying assets. This will be a hit, but once the hysteria fades, expect yet another gruesome correction and crash thereafter.

This is going to be a very complicated setup. I wouldn't invest straight away, would need to see if it works and follows the same patterns as the real world stocks

Can someone explain to me the benefit in doing this? How is it an improvement on the traditional system, it is not hard for people to currently buy or sell stocks. The only difference I can think of is the ledger but do people really want to see how many stocks others hold and when they're sold/bought/moved

Not 100% sure, but probably the option to buy/sell these stocks through using bitcoin or other cryptocurrencies, instead of using fiat.

I don't think so. Investing in stocks(especially US stocks or whatever foreign stock) are probably difficult, especially if you're living on a 3rd world country, as chances are, you're probably only limited to stocks of businesses in your country. I really can't say how advantageous this exchange will be though. I'm honestly expecting strict KYC/AML requirements.

I'm not sure this would work well with a blockchain because if you lose your tokens they are gone forever.  It's not like owning a regular stock where your information is in a centralized database that will never get lost.  The only benefit I see is that it will allow people to buy fractions of a stock or asset that is very costly.

In one word, transparency.  With today's exchanges you don't even own real stock.  You pay a custodian who claims to own the shares and they are regularly audited by government agencies to make sure they have the stock to back up their ownership claims to customers.  Many skeptics believe that there aren't appropriate auditing methods in place to account for all customer stock ownership claims.  Having assets be tokenized would allow custodians or individual customers to prove their ownership claims using a public blockchain as opposed to trusting custodians and auditors.  There is no doubt in my mind that tokenization of assets will take place, but whether it will be on the Bitcoin blockchain, a secondary asset layer, or an entirely separate chain will be for the future to decide.  



You seem to have these backwards.  Blockchains are forever, centralized databases are easily manipulated.

Yep, it has nothing to do with decentralization, but it's still some usage of blockchain. I also think it's a positive thing, because at least this way people will get to know blockchain more. However, I am not sure there will be people who'll buy these tokenized assets... Crypto investors are valuing decentralization and volatility, investing in tokenized stocks will be close to investing in stable coins for them. As for stock traders, I don't see why they'd be interested to go through some shady intermediary and deal with unknown technology if they can simply buy stock they way they usually do. Backing cryptos up with stocks is just another weird experiment that will probably lead to nothing. But the idea is not that bad in terms of attempts to promote blockchain.

I suppose with tokenized assets, there's always trust involved. Even if you could use a DEX to trade tokens that are built on decentralized platforms, you still have to trust that the issuer will redeem them for real assets.

We're seeing this situation with new stablecoins like PAX. Paxos is analyzing the blockchain and freezing funds (https://www.ccn.com/paxos-standard-hassling-ethereum-traders-trying-to-redeem-stablecoin-pax-for-dollars/) when customers attempt to deposit and redeem for real dollars. This will unfortunately become commonplace in the future. The idea of tokenized assets seems great if it means you can avoid KYC by trading on P2P or DEX markets. Unfortunately, the centralized issuer model can throw a wrench into such plans.

Using it to circumvent laws isn't going to go down kindly with regulators if that is the reason.


Right, so then this would only be an improvement if the company that issued the stock were the ones who enforced the change. I imagined for the most part it would be similar to what you said where some company would be claiming to hold real stocks and then issuing blockchain stocks.

And this is why I'm so skeptical about many blockchain projects, they so often end up having some centralized body in its core that connects their blockchain with real world, thus defeating the whole purpose of the blockchain. After that the only good thing left is publicity and immutability, but those things are not always great - publicity means no privacy, which is bad in many cases, and immutability means that errors are permanent. This again means that blockchain has many limits and can't be slapped onto everything in this world.

I think, with the correct implementation, tokenization will improve the assets' velocity and liquidity. Surely it has cons, e.g., need to trust a 3rd party to hold the assets securely, and to audit it periodically. These might be a bit different for stocks.

Let's assume a company issues a stock via STO, underwriters need to prepare everything in accordance with the law, then sell the token to investors. Investors can hold their token in their wallet (not custodial account). The company still need to be audited for good governance though.

This tokenization is good! But, only as good as the 3rd party underwriter and auditor.

If this will bring opportunity for us to invest easily then I would agree with it.
In crypto, most of the projects are using tokens, and based on my experience, I am satisfied with it as you just have to buy a token and hold it, then you are now an investor or stockholder of a company. When there is already government intervention then it would be easier but we should be compliance with the guidelines they will release to avoid possible future problems.

Its too risky for stocks to be tokenize and I don’t think it will happen sinces stocks are more centralized that can’t even go as a decentralized market. Let’s be contented for this two market to both exist with different function, just let people to choose where to invest. Its better to have more option that to focus in one thing.

It's most likely a scam,or just a stupid idea that is about to fail.
Everything can be tokenized.Some devs might create a "tomatocoin"-a token/coin which price is backed by the price of tomatoes.It's possible,but what's the point?Stock-tokens are nothing but a way to bring stock trading to the poor and ignorant.Eventually the poor and ignorant people will lose their money.

The advantage would be to trade stocks even when the market is closed.
One more advantage would be to be able to buy USA stocks from anywhere in the world. If you live in a 3rd world countryy cannot buy USA stocks from here.

The disadvantages are obvious and are bigger than any advantage:
- you have to trust the third party who made the toekn really has those stocks backed up. Just like tether.
- legal problems, in case sec doesn't like this.

Tokenization of real world assets is going to be challenging for the following reasons
1. Requires trust to some extend as there is still some ownership (in the real world) that is tied to a token
2. Requires recognition from all parties (the public, the court, government, entities, etc.) for arbitration reason
3. The blockchain platform needs to be stable which at this moment still early days due to constant development

It would be more interesting to see more experiments in the digital world being created utilizing blockchain rather than a straight up tokenization of real world assets. At least let the experiment run first until the tech is ready.

If you recall, it is not digital newspaper that took off on the internet; there might be new use cases that will be unlocked.

This is a bad news for banks because they are the one who hold funds for this kind of activity and they get commission for every transaction done weather its a loss or a profit. Now, if tokenization would be materialized, people will now have an access to these exchanges without giving much information and restriction and it would do great to exchanges because more investors means healthier profit.

This is exactly where the entire world is heading. Everything in this world is going to be merged into blockchain. Every traditional market and financial services will also be merged into blockchain.

It will eventually become decentralized. I mean even the crypto exchanges have a middleman right now, there are some decentralized exchanges between people where there is no middleman but that is taking sometime. If it is taking sometime INSIDE the crypto space, it will be a while before we can have other investment options in decentralized sense.

All the above, it is a right step forward to be able to buy stocks and so forth with crypto so you can actually still keep your money in crypto while investing into other stuff. Right now stocks are very low due to the economical crisis but if people start to buy stuff with crypto there than they can win double, both when crypto increases in value and also when the stocks go up as well. Which means they will probably suggest that to others and we can get more hype around it.

Aren't stocks right now existing digitally? That is why if you are buying and selling you just execute your order in your online trading platform. If you are still thinking that we are still keeping stock certificates then you are wrong most of the investors here keep their stocks in their online portfolio. So I really don't get what you are saying here because stocks even commodities like gold exist digitally now. Also I don't think we need the Blockchain integration you are talking about because as of now the NYSE is heavily monitored by SEC which you know is always active on filing white collar crimes.

Yep, I started to grasp that from a few other responses but thank you nonetheless. It seems that there's going to be a huge number of difficulties to face for this to happen. I can't really see it happening unless a major established stock exchange or company do it themselves. We don't need another tether like situation to loom over an already precarious market.

trading stocks or gold is done digitally through an online broker, but you're limited to a handful of brokers and you're stuck with their fees/limits/requirements. in other words, you're stuck transacting through intermediaries. and there are often jurisdictional restrictions too---it can be difficult to buy foreign stocks.

tokenized assets can change that. they can be traded p2p globally via the blockchain 24 hours a day. tokens can be traded on a DEX, avoiding brokers entirely. investors can access markets they previously couldn't.

I think it still takes a long time for the asset tokenization for many people, seeing the current development there are still many obstacles that must be overcome. it seems easy, but this will be difficult if it is not supported by the supporting elements of the development of tokenisation, so that it requires support from the parties concerned

It will also encourage terrorist funding to which banks are always minded to follow a country's Anti-Money Laundering laws.

We should also expect more manipulation for the market if this happens.

I believe we never need to bother about how blockchain technology will be helping them but we must look into how their initiatives will be helping crypto environment at least for promotional view. I mean to say this kind of adoption will help blockchain to be taken to more new people. That will help bitcoin to be adopted in wide-spread. I do see all kind of blockchain technology-based the developments as an indirect promotions for bitcoins.

How do you assume the digital version means it will be blockchain technology based ? Moreover I like to have any reference URL for their plans. It is always good practice to link us for any this kind of discussion. That will help to understand better the actual things rather than going for a discussion only based on your perspective view.

I think the biggest selling point of this idea would be the globalization. Even tough it is really difficult not to invest into anything worldwide when you have a lot of money, it is quite difficult to invest into stuff when you have just couple thousand dollars.

Someone from France investing into USA stocks at about 100-200 dollars capital would have a lot of hard time finding the right place to do so. With this technology just like how we managed to find a way to send each other 5 dollars for couple of cents transaction fee, it will be same for stocks, someone from south Africa sending 5 dollars to someone in Australia is incredibly easy in crypto whereas quite difficult in traditional systems.

Same applies here in stocks, someone from South Africa to buy stocks of an Australian company is quite hard right now, at least hard if you are not spending 25 thousand dollars, this way you can spend 25 dollars and get 3 stocks of an Australian company easily. Crypto and blockchain just makes globalization incredibly easy.

Tokenisation wouldn't mean much, in my opinion.

It's virtually the same as stocks being digitally traded, except there may be advantages in terms of using a blockchain to facilitate transactions, such as the immutability of the transactions. It's not perfectly trustless either, unlikely the real decentralised currencies. Coingecko breaks it down perfectly.

The only real advantage that I can see is if the tokenised shares can be traded on a decentralised platform, which could open up a global marketplace of trading shares without having to physically open an account overseas. That would be tremendously useful for global security traders, in my opinion. But even then, it would lead to a lot of compliance and regulatory considerations which means that it's probably going to be considered by a select few companies with special circumstances.

I think this development is contradictory. When blockchain technology is used in the stock market, there will be a lot of unemployed securities consultants, brokers are bankrupt. Meanwhile, blockchain technology will not be too helpful in trading because it is quite confusing.
I think crypto and the stock market should develop on its own path. It will make the world's economy better.

Tokenization of real-world assets would make every transaction faster and efficient, transparent, and liquid. This idea is good, but hasn't proven to be effective for large scale transactions. And for sure large scale transactions of tokenization will get the attention of the governments because of the economic impact of tokenization.

This is already happening especially if you are gambling loke poker game. The money now being replace with chips or tokens to be exchange to fiat if one will decide to wrap up playing games in gambling. Fortunately bitcoin was first of the kind token a digital token that could be replace or.substitue to money.

Wel just hoping that the digital tokens will br accepted in some areas where it will be needed.

Ya it has become trend, now developer are tokenising every assest which is wrong in my opinion.but for stock I would recommend that stock should come under a secure ledger and there should be less legalisation and more control rather than using other platform to hold and trade.

We don't need tokens, stocks have been digitalized already. I remember seeing stock certificates years ago, but nowadays trading cryptocurrencies or stocks on an online platform is exactly the same thing.

i don't think we ready for it.

maybe couple year we can  Tokenization evey real-world assets

Whats the benefit of this? So you could trade NYSE stocks even if the market is close? Keep it real dude there is really no benefit on offering up stocks already existing in a regulated environment to a decentralize exchange. This stocks in the NYSE are like the backbone of USA's economy as they are also registered companies to US, the SEC won't allow any foreign body to play with their companies like a pump and dump coin. This would simply be catastrophic to their economy.

Tokenization of real world assets is happening as we speak. Ready or not it`s started by advanced and far more developed countries than some third world countries. In my town people don`t know about bitcoin, tokenization for them is "out from space" term, how to even explain to many of them what is crypto. Nevertheless, digitalization is happening everywhere around, people can still avoid it, but not for long.
Nobody is waiting for weak and old, world is have direction and its digitalization, like I said, you can be ready for it, or not.

The tokenization of everything will need a great number of laws and all the laws and law system should be tokenized too.

that's the ultimate value of tokenization---the ability to trade on secondary markets (including p2p, DEX) without directly dealing with the broker/issuer. one could avoid KYC or jurisdictional limitations, or even invest without access to formal banking.

the problem, as we're beginning to see with stablecoins like PAX, is that this can put the fungibility of tokens in jeopardy. token issuers can't stop people from freely using tokens like any other cryptocurrency, but they can hassle you when you try to redeem tokens and they can freeze your funds once you've deposited them for redemption. this will ostensibly be done for AML purposes. i'm curious to see how this all pans out over the next decade or so. it's a legal clusterfuck.

It's hard to talk about anything now. Too little time has passed since it all started, it is still early. It seems to me that this path is inevitable. I don’t know whether this is good or bad, but the fact that in the future many spheres will switch to the block chain is for sure.

Even though financial institutions don't like the blockchain technology and cryptocurrencies they have started doing research for tokenization of assets and how this model can be applied to the real world. I am aware that the European Central Bank has an Innovation team which tries to shed light on tokenization and I believe that they send the correct message to the community for the mass adoption.

my town people don't know about bitcoin too when say bitcoin everyone ask "what is it"

but some people know about crypto scam like bitconnect and greedy invest in it.  LOL!

I am believe blockchain will change our world. Blockchain offering a transparant ledger and make bussiness more efficient and company can saving a lot cost. I think tokenizing asset will happen in near future and people will more familiar with cryptocurrency and blockchain

The tokenization of real-world assets isn't a thing of the future, it's started already. More and more, we are seeing companies moving into cryptocurrency. Service provision companies lead the way, but companies providing goods are also picking up on the trend. If well structured, this process could actually by-pass stringent and sometimes stifling conditions of financial institutions to raise funds for expansion directly from investors.

Soon or later, tokenizing everything will happen. Like in financial system, if bonds or obligation issued by company with smart contract, i think it will saving a lot cost because they dont have use third party for underwriter and too much marketing. I am believe cryptocurrency will evolve