Tokenized stocks reach the Solana network. The Swiss company Digital Asset AG is now offering top tech shares in token form – initially exclusively on FTX.
The Swiss tokenization company Digital Assets AG (DAAG) brings tokenized files to the Solana blockchain. This was announced by Digital Assets on June 24th in a press release that BTC-ECHO received. Then they want to migrate their tokenization infrastructure to the Solana network. Previously, DAAG used restricted distributed ledger technology to enable trading in stock tokens.
Switching from operating on a private blockchain to operating on Solana will provide a much more efficient and cost-effective environment for trading and using tokenized stocks,
explains Brandon Williams, Head of Corporate Development at Digital Assets AG.
We envision that the entirety of traditional financial and capital markets can work on the blockchain, and Solana was an obvious choice [dafür].
Anatoly Yakovenko, CEO of Solana Labs, is also looking forward to driving the CeFi-DeFi marriage forward:
We are excited that DAAG is launching tokenized shares on the Solana blockchain as it is clear that this is the future of financial innovation when we work together to combine traditional finance with decentralization.
FTX founder and CEO Sam Bankman-Fried even speaks of a “paradigm shift”. Bankman-Fried is quoted as saying in the press release that they want to create the “standard” in terms of share tokens together with DAAG and Solana.
Tokenized shares on Solana: BaFin-compliant thanks to securities prospectus?
The tokenized shares are initially available exclusively on the FTX crypto exchange. Only users who have gone through the KYC process at FTX can use the offer. Shares from Facebook, Google, PayPal and 49 other top tech companies can be traded. Unlike the stock tokens, for example; which Binance offers in cooperation with DAAG and the German asset manager CM-Equity, the tokenized shares of DAAG have a firmer regulatory foundation. For example, DAAG prepared a securities prospectus for the tokenized shares, which was approved by the Liechtenstein Financial Market Authority FMA.
The Federal Financial Supervisory Authority (BaFin) criticized the lack of a securities prospectus in the spring of Binance’s stock tokens. Binance argued, among other things, with the limited transferability of the stock tokens against the BaFin ruffle. This is how the users trade: inside the tokens exclusively with CM-Equity.
In contrast, the tokenized shares that DAAG is launching today on Solana are to be freely transferable as “free-floating tokens” and can therefore also be traded around the clock on the secondary market. Both centralized and decentralized exchanges built on top of the Solana blockchain will be able to include trading in tokenized stocks on their platforms. A remarkable prospect when you consider that our Coin of the Month May is officially still in the beta version.