Digital Assets AG, a Swiss-based company focused on the design, structure and issuance of tokenized financial instruments, today announced the launch of its tokenized equity infrastructure on Solana. In addition, it will launch the first free-floating security token, allowing the risk-free and compliant trading of tokenized stocks on FTX during its debut.
Brandon Williams, Director of Corporate Development at Digital Assets AG, said: “The transition from operating on a private blockchain to operating on Solana will provide a more efficient and cost-effective environment for the trading and utilization of tokenized stocks.” “We Imagine that the entire traditional financial and capital markets can operate on the blockchain, and Solana is the obvious choice.”
At present, tokenized stocks can be traded on a single entity such as an exchange or a private blockchain, and only provide users with the option of opening or closing positions, but are subject to issues such as inability to withdraw funds, cross-chain transfers, or an external party.
With the launch of Digital Assets AG’s free-floating tokenized stocks on Solana, centralized and decentralized exchanges built on the Solana blockchain will be able to integrate tokenized stock trading.
“FTX is always looking to provide cutting-edge products to its users. Sam Bankman-Fried, founder and CEO of FTX, stated that DAAG’s tokenized equity infrastructure will help drive a paradigm shift in the underlying market structure, and we are happy to continue Work with Solana and DAAG to set the standard for the industry.
Debut on FTX
At launch, FTX will become the exclusive home for users who have obtained KYC approval in permitted jurisdictions. They can buy, sell and withdraw 55 freely floating stocks within a 24/7/365 trading cycle, with almost instant settlement and no Counterparty risk. They can also move to the secondary market without restrictions.
Popular stocks that will be immediately available for trading include Facebook, Google, Netflix, Nvidia, PayPal, Square and Tesla. According to the securities prospectus approved by the Liechtenstein Financial Market Authority (FMA), DAAG tokenized shares are valid in the European Economic Area (EEA).
Anatoly Yakovenko, CEO of Solana Labs, said: “We are very pleased to let DAAG launch tokenized shares on the Solana blockchain, because it is clear that this is the future of financial innovation, because we work together to connect traditional finance with decentralization. “DAAG is ready to expand the financial technology that can be built on Solana, and DeFi products are ready to support these new equity tokens.”
Free-floating tokens are securities tokens approved by regulatory agencies and can be used for tokenized stock trading. They represent the number of shares in any particular asset available to the public, excluding locked-up shares, such as shares held by company executives. Currently, DAAG is integrated with FTX, Binance and Bittrex Global, which provide services such as tokenized stocks, broker APIs, and fractional stocks.