Free-floating tokens are regulatory-approved security tokens that can be used for tokenized stock trading. Digital Assets AG now wants to launch them on the Solana Blockchain, with an FMA-approved prospectus.
Digital Assets AG (DAAG) is a Swiss-based firm focusing on the design, structure, and issuance of tokenized financial instruments. It now brings its infrastructure to the Solana blockchain. The securities prospectus was endorsed by the Financial Market Authority (FMA) of Liechtenstein, meaning the tokenized Stocks are valid in the European Economic Area (EEA).
Free-floating tokens are regulatory-approved security tokens that can be used for tokenized stock trading. The tokens can represent the shares of any given asset available to the public. The only excluded stocks are locked-in shares, such as those held by company executives and governments. Currently, DAAG is integrated with FTX, Binance, and Bittrex Global, where they offer services such as tokenized stocks, broker API, and fractional shares.
Currently, tokenized stocks can be traded on a singular entity, such as an exchange or private blockchain. That gives users the option to open or close positions, but they are restricted as they often can’t make withdrawals or transfer cross-chain or to an external party. By launching free-floating tokenized stocks on the Solana blockchain, centralized and decentralized exchanges built on the Solana blockchain will be able to add tokenized stock trading to their platforms.
Brandon Williams, Corporate Development Lead at Digital Assets AG, says, “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.”
Partnered with FTX
FTX will be the exclusive home for KYC’d buyers and sellers. They will be able to buy, sell and withdraw 55 free-floating stocks 24/7 and every day of the year. The settlement will be nearly instantaneous, and there is no counterparty risk.
Buyers and sellers will also be able to make transfers to secondary markets without restriction. Among the first 55 tokenized stocks are blue chips such as Facebook, Google, Netflix, Nvidia, PayPal, Square, and Tesla.
Sam Bankman-Fried, founder and CEO of FTX, says, “FTX is always looking to provide cutting-edge products to its users. DAAG’s tokenized stock infrastructure will help facilitate a paradigm shift in the underlying market structure, and we’re excited to continue working with Solana and DAAG to set the standard in this industry.”
Solana blockchain was the “obvious choice”
DAAG is convinced working with the Solana blockchain was the best choice. “We envision the entirety of traditional finance and capital markets being able to operate on the blockchain, and Solana was the obvious choice,” says Brandon Williams.
Anatoly Yakovenko, CEO of Solana Labs, commented, “We are excited to have DAAG launch tokenized stocks on the Solana blockchain as it is clear this is the future of financial innovation as we work together to bridge traditional finance with decentralization. DAAG is primed to expand the financial technology that can be built on Solana, with DeFi products ready to support these new equity tokens.”
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