Digital Assets AG, a Swiss-based firm focusing on the design, structure, and issuance of tokenized financial instruments, today announced the launch of its tokenized stock infrastructure on Solana. Additionally, it will launch the first free-floating security tokens allowing the risk-free, compliant transfer of tokenized stocks exclusively on FTX during its initial debut.
“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,” said Brandon Williams, Corporate Development Lead at Digital Assets AG. “We envision the entirety of traditional finance and capital markets being able to operate on the blockchain and Solana was the obvious choice.”
Currently, tokenized stocks can be traded on a singular entity such as an exchange or private blockchain and only give users the option to open or close positions, but are restricted by constraints such as the inability to make withdrawals, or transfer cross-chain or to an external party.
With the launch of Digital Assets AG free-floating tokenized stocks on Solana, centralized and decentralized exchanges built on the Solana blockchain will be able to integrate tokenized stock trading.
“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,” said Sam Bankman-Fried, founder and CEO of FTX.
Debut on FTX
At launch, FTX will be the exclusive home for KYC-approved users in permitted jurisdictions to buy, sell and withdraw the 55 free-floating stocks in a 24/7/365 trading cycle with near-instant settlement and no counterparty risk. They will also be able to make transfers to secondary markets without restriction.
Popular stocks that will be immediately available for trading include Facebook, Google, Netflix, Nvidia, PayPal, Square, and Tesla. With a securities prospectus endorsed by the Financial Market Authority (FMA) of Liechtenstein, DAAG Tokenized Stocks are valid in the European Economic Area (EEA).
“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.”
Free-floating tokens are regulatory-approved security tokens that can be used for tokenized stock trading. They represent the number of shares of any given asset available to the public excluding locked-in shares, such as those held by company executives. Currently, DAAG is integrated with FTX, Binance, and Bittrex Global where they offer services such as tokenized stocks, broker API, and fractional shares.