Digital Assets AG launches tokenised stocks on the Solana Blockchain
Digital Assets AG, a Swiss-based firm focusing on the design, structure, and issuance of tokenised financial instruments, is to bring its tokenised stock infrastructure to the Solana blockchain. Additionally, it will launch the first free-floating security tokens allowing the risk-free, compliant transfer of tokenised stocks exclusively on FTX during its initial debut.
“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 utilisation of tokenised stocks,” says 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.”
Currently, tokenised 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, but are restricted by constraints such as the inability to make withdrawals, or transfer cross-chain or to an external party. With the launch of Digital Assets AG free-floating tokenised stocks on Solana, centralised and decentralised exchanges built on the Solana blockchain will be able to add tokenised stock trading to their platforms.
“FTX is always looking to provide cutting edge products to its users. DAAG’s tokenised 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,” says Sam Bankman-Fried, founder and CEO of FTX.
At launch, FTX will 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. They 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. With a securities prospectus endorsed by the Financial Market Authority (FMA) of Liechtenstein, DAAG Tokenised Stocks are valid in the European Economic Area (EEA).
“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 decentralisation,” says Anatoly Yakovenko, CEO of Solana Labs. “DAAG is primed to expand the financial technology that can be built on Solana, with DeFi products ready to support these new equity tokens.”
Free-floating tokens are regulatory-approved security tokens that can be used for tokenised stock trading. They represent the number of shares of any given asset available to the public excluding 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 tokenised stocks, broker API, and fractional shares.