Why are large companies turning to tokenized stocks? | Author: Dwayne D’cunha | The Capital | June 2021
Digital Assets AG is a Swiss-based financial company that is providing digital tokenized assets on the Solana blockchain (Solana is a blockchain network that relies on the “Proof of History” protocol to help build scalable and secure applications Procedure), while only allowing users to use the FTX cryptocurrency exchange to purchase these assets. The stocks of major companies such as Facebook, Apple, Google, Netflix, Nvidia, PayPal, Square and Tesla will be listed on the exchange. This is still in its infancy, as it is limited to users who live in certain areas and complete the required KYC process. It seems that big companies have already acknowledged the rise and potential of future cryptocurrency use, which will certainly attract other giants such as Walmart and Amazon to follow suit.
However, this is not the first time that an exchange has listed stocks as tokenized stocks. Binance did a similar thing in April, listing Microsoft, Coinbase, Apple, Tesla, and MicroStrategy, which is also limited to those who pass the KYC process.
This step is very useful for companies and people who want to have a portfolio based on cryptocurrency instead of fiat currency. Although the process will remain more or less the same, it still adds an element of decentralization, which is always nice to see.