Digital Assets AG, a Swiss-based blockchain firm supporting the issuance of tokenized financial instruments, says its tokenized stock infrastructure will move to the Solana blockchain. Simultaneously, the company said it will launch the first free-floating security tokens allowing the compliant transfer of tokenized stocks on FTX during its initial debut.
FTX is a crypto exchange that supports derivatives, options, volatility products, tokenized stocks, prediction markets, leveraged tokens as well as an OTC desk.
The company explains that currently, tokenized stocks can be traded on a singular entity such as an exchange or private blockchain and only give users the option to open or close positions. There are restrictions such as the inability to make withdrawals, or transfer cross-chain or to an external party. By enabling tokenized stocks on the Solana blockchain these securities will be able to add tokenized stock trading to other platforms.
“The move from operating on a private blockchain to operating on Solana will offer a much more efficient, and cost-effective environment for the trading and utilization of tokenized stocks,” said Brandon Williams, Corporate Development Lead at Digital Assets AG. “We envision the entirety of traditional finance and capital markets being able to operate on the blockchain and Solana was the obvious choice.”
Sam Bankman-Fried, founder and CEO of FTX, said that DAAG’s tokenized stock infrastructure will help facilitate a paradigm shift in the underlying market structure.
At launch, FTX is expected to be the exclusive home for KYC’d buyers and sellers in permitted jurisdictions to buy, sell and withdraw the 55 free-floating stocks in a 24/7/365 trading cycle with near-instantaneous settlement and no counterparty risk. Users will also be able to make transfers to secondary markets without restriction. Popular stocks that will be immediately available for trading include Facebook, Google, Netflix, Nvidia, PayPal, Square and Tesla.
Anatoly Yakovenko, CEO of Solana Labs, said they were excited to have DAAG launch on their blockchain:
“DAAG is primed to expand the financial technology that can be built on Solana, with DeFi products ready to support these new equity tokens.”