Transforming Investment: INX's New Tokenized Stocks on Polygon
Introduction to Tokenized Stock Trading
In a groundbreaking move for the investment sector, INX Digital Company, Inc. (Cboe CA: INXD) has partnered with Backed to expand their platform for on-chain tokenized stock trading. This initiative introduces a variety of highly sought-after stocks including Tesla, Microsoft, Google, and Gamestop, along with leading ETFs such as the S&P 500 and Blackrock's iShares Treasury. This transformative step forward is designed to provide traders with enhanced options, all tokenized under the European Union's securities laws, ensuring full compliance and security.
The Mechanics of Tokenization
Tokenization involves converting ownership rights of real-world assets into digital tokens on a blockchain network. In this case, the new tokenized stocks are issued on the Polygon Proof of Stake (PoS) network, offering a myriad of benefits such as 24/7 trading and secure transactions. These tokens are backed on a one-to-one basis by their respective underlying assets, providing transparency and trust to investors.
Access to Traditional Assets
This expansion represents a significant leap towards democratizing financial markets by merging traditional investments with the cutting-edge world of digital assets. Non-U.S. eligible investors can now invest in these tokenized stocks outside of conventional trading hours. This means more flexibility and opportunity to manage one's investment portfolio with ease, particularly advantageous for those using cryptocurrency for account funding.
Expert Insights on the Expansion
Shy Datika, CEO of INX, expressed excitement about the collaboration with Backed, emphasizing that this is merely the beginning. The launch of tokens like bTSLA and bMSFT is just a part of a larger strategy focused on increasing accessibility and efficiency within the tokenized asset space. Similarly, Adam Levi, Co-Founder of Backed, highlighted the importance of this integration, suggesting that it represents a new chapter in how traditional and digital financial markets intersect.
The Role of Polygon Labs
Colin Butler, Global Head of Institutional Capital at Polygon Labs, noted that this initiative is pivotal in promoting accessibility to financial markets. The implementation of Polygon PoS assures a scalable and low-cost solution for trading, allowing more individuals to access necessary investment vehicles. This strategic approach ensures that investment opportunities are available to all, regardless of their financial background.
Advantages of the New Offerings
Traders utilizing the INX platform for these tokenized assets will enjoy features like self-custody, enabling them to hold securities directly in their digital wallets. This method of ownership grants them full control over their investments. Moreover, integrating decentralized finance (DeFi) capabilities allows these tokenized assets to be used as collateral within various DeFi platforms, opening many doors for liquidity and leveraging investments.
The Future of Digital Assets
This collaboration signifies a step towards redefining the investment landscape. By providing a marketplace for trading tokenized assets, INX not only supports innovation in financial transactions but also fosters security through blockchain technology. The transparency brought by the use of distributed ledgers creates a sense of confidence among investors as they navigate this evolving market.
About INX and Its Mission
INX is not merely a trading platform; it's a pioneer in fostering an interconnected financial ecosystem. The company is driven by a mission to empower individuals with access to the latest financial innovations while maintaining a strong adherence to regulatory standards. By seamlessly combining traditional investment avenues with digital innovations, INX is redefining how we approach capital markets.
About Backed and Their Vision
Backed aims to bridge the gap between traditional finance and the decentralized world by offering fully collateralized tokens for real-world assets. Their commitment to transparency and compliance ensures that eligible investors can engage with these assets confidently. With their innovative approach, Backed is reshaping how investors interact with capital markets.
Frequently Asked Questions
What types of stocks are being offered by INX?
INX is listing various tokenized stocks including Tesla, Microsoft, Google, and Gamestop as well as ETFs like the S&P 500 and iShares Treasury.
How does tokenized stock trading work?
Tokenized stock trading allows investors to own a digital token representing an actual share in a company on a blockchain network, giving them the ability to trade and manage their investment securely and efficiently.
Who can invest in these tokenized stocks?
The tokenized stocks are available to non-U.S. eligible investors who can engage outside standard market hours using cryptocurrency for funding.
What are the advantages of using the INX platform?
Investors benefit from features like 24/7 trading, self-custody of assets, and the opportunity to utilize tokenized stocks as collateral in decentralized finance applications.
What is INX's approach to regulatory compliance?
INX operates under strict regulatory requirements to ensure transparency and security within the trading of digital securities, aligning closely with established financial laws.
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