European Blockchain Startup Launches Trading in Tokenized Securities

Belarus-based blockchain startup Currency.com has launched a trading platform for tokenized securities.

The firm announced Tuesday that the platform would allow investors to directly trade and invest in financial instruments using the cryptocurrencies bitcoin or ethereum, without first converting to fiat.

The platform will initially host over 150 tokenized securities, tracking the underlying market price of financial instruments such as equity and commodities, it said, while over 10,000 similar offerings could be available in the future.

Currency.com explained that the service lets investors buy a token that would reflect the performance of, say, an Apple share on the Nasdaq stock exchange, at the “same economic costs and benefits of an Apple share."

“To offer these capabilities, Currency.com leverages the technology of Capital.com, its sister platform regulated by the FCA [U.K. Financial Conduct Authority] and CySEC [Cyprus Securities and Exchange Commission], to offer users access to a tokenized version of a contract for exchange of a specific equity, commodity or index,” the firm said.

Currency.com said it's “fully compliant” with “Decree No. 8 On Development of Digital Economy” of the President of the Republic of Belarus, which legalizes blockchain businesses, adding it follows anti-money laundering (AML) and know-your-customer (KYC) rules, as well as General Data Protection Regulations (GDPR).

The mobile trading apps of the platform, both iOS and Android, are expected to be available as beta versions from February.

This is not the first platform to enable trading of tokenized securities. Earlier this month, Estonia-based crypto startup DX.Exchange launched a trading platform allowing clients to purchase crypto tokens representing shares in different tech firms listed on Nasdaq. DX.Exchange's customers will be able to use select cryptocurrencies, as well as fiat currencies to purchase the tokens.

Trading screen image via Shutterstock