Digital Assets AG announced today that it will launch the first tokenized stocks on the Solana blockchain.
The Swiss-based company will bring tokenized shares from Facebook, Google, Netflix, Nvidia, PayPal, Square and Tesla into the world of Decentralized Finance or DeFi.
According to a statement directly from Digital Assets AG, the new tokenized shares on the public blockchain will be available exclusively on the FTX trading platform.
The Swiss company, a leader in the design, structure and issuance of tokenized financial instruments, has announced its intention to expand its infrastructure, integrating the possibility of trading on private blockchains or individual exchanges with that of using, for the first time, a public blockchain.
In fact, Solana is the public blockchain that has become famous for the scalability of its transactions, at reduced costs. It is no coincidence that just two months ago, Tether also chose it to issue its USDT tokens, thanks in part to the 550 transactions per second rate recorded on Solana.
Brandon Williams, Corporate Development Lead at Digital Assets AG, commented:
“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. We envision the entirety of traditional finance and capital markets being able to operate on the blockchain and Solana was the obvious choice”.
Stocks on the Solana blockchain: traditional finance lands in DeFi
Solana’s new tokenized stocks on the blockchain aim to expand the DeFi market to include traditional finance. In fact, Digital Assets AG’s shares are also called free-floating and provide centralized and decentralized exchanges built on the Solana blockchain to add the trading of tokenized stocks to their platforms.
Sam Bankman-Fried, founder and CEO of FTX, the first trading platform to exclusively receive the new shares, commented as follows:
“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”.
At launch, FTX will be the exclusive home for KYC-approved buyers and sellers in permitted jurisdictions to buy, sell and withdraw the 55 floating shares in a 24/7/365 trading cycle with near-instant settlement and no counterparty risk.
The prospectus for the securities to be offered have been approved by the Financial Market Authority (FMA) of Liechtenstein, and the DAAG Tokenized Stocks are valid in the European Economic Area (EEA).
At the time of writing, Solana (SOL) is among the top 20 crypto assets by market capitalization, with a total market cap of $8 billion.
Anatoly Yakovenko, CEO of Solana Labs, said:
“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,” said 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”.