Crypto and stocks have always been regarded as two different investments. Crypto is known to be one of the most volatile investments, while stocks are more stable. Investors tend to diversify their money by investing in stocks for the long term and in digital coins for the short term.
The same concept applied to crypto and fiat currencies before. Since crypto prices move up and down aggressively, fiat currencies are steady because they are what people considered money. When developments came to the blockchain, stablecoins have been launched. If the investor wants a more stable investment than pure crypto, they can invest in stablecoins of which prices are tied to fiat currencies or other stable commodities to control price volatility.
Today comes the news that tokenized stocks have been launched in Switzerland. Who would have thought stocks and crypto would be combined anytime soon? Digital Assets AG, a firm that tokenizes financial equities in Switzerland, has released its tokenized stocks on the Solana blockchain. This company has been using a private blockchain to provide tokenized crypto trading in popular platforms such as Binance, Bittrex Global, and FTX.
This Solana-based service, however, is now accessible only for FTX customers. FTX and Solana are tightly connected. Alameda Research, the sister business of FTX, is a Solana investor, and FTX has its own decentralized Solana Blockchain Exchange named Serum.
During the initial phase of the project, users on FTX who have successfully completed the KYC requirement will get access to 55 free-floating stocks. The service will be available 24 hours every day. According to Digital Assets AG, the service is open all year round, meaning anyone from the countries supported will be able to purchase, sell, and cash out their digital assets at any time.
Free-floating stocks are the kind of assets that are permitted to be traded on tokenized platforms. Per Digital Assets AG, these stocks represent the stocks of a particular asset, excluding those that are locked up.
“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,” according to the corporate development lead of Digital Assets. “We envision the entirety of traditional finance and capital markets being able to operate on the blockchain.”
Solana is considered faster and cheaper than its competitor Ethereum when performing transactions. With tokenized stocks on it, transactions will be more affordable for investors.
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