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DX.Exchange and Perlin have officially announced a mutual collaboration to bring fractional shares of stocks to the world’s “bottom billion.” The idea is to make stocks ultra-accessible through tokenization.
One of the main promises of tokenized securities is increased accessibility and liquidity. This is partly why many security token issuers have been targeting the real estate market which has historically suffered from low liquidity. However, another area which could use more liquidity is the public offering of stocks themselves.
Last month, we reported on DX.Exchange working on tokenizing Apple, Facebook, and Tesla stocks on Ethereum. Although the companies would not be directly involved, the digital securities exchange was partnering with MPS MarketPlace Securities Ltd. to purchase and hold the shares which would be tokenized.
DX.Exchange is fully compliant thanks to Estonia’s progressive laws on digital securities, where they are based. However, the exchange is now taking this idea a step further by collaborating with Perlin, a Hong Kong-based cloud-computing marketplace. Through their powerful, global hardware, DX.Exchange is looking to use Perlin’s technology to bring tokenized shares to the “bottom 1 billion” of the world.
It’s a novel concept which has many excited.
Speaking to Blockchain Reporter, Dorjee Sun, CEO of Perlin, gave them some further details on the announcement.
When asked about the target audience for Perlin and DX.Exchange, Sun explained:
“The fact that 10M Apple device owners live in India but there is minimal Apple shareholder ownership there shows the big opportunity. So our big target markets are India and Indonesia as they are the 1 and 3 biggest Facebook populations but also have low Facebook shareholder ownership are the big opportunities for DX and Perlin.”
For Sun, he sees both Perlin’s and DX.Exchange’s goals as being aligned: bringing financial options to the unbanked.
“Perlin allows the unbanked to earn income by renting out their devices to cloud computation. But DX then adds access to the global markets by offering the unbanked the opportunity to have upside and ownership of equities being fractionalized so they don’t need to be KYC’d by a broker in the USA, don’t need a bank account to send the money and don’t need $170 for an Apple share but can buy a fraction of that eg. $17 for 10% of an Apple share.”
The benefits of fractionalizing top stocks means that more and more of the unbanked can begin their foray into finance. And tokenization, according to Sun, will lead this development. Not only are security token markets trading 24/7, but they provide unprecedented accessibility and liquidity never before possible.
What do you think of the collaboration between Perlin and DX.Exchange? Does such an idea have the potential to empower a new generation of investors? Let us know your thoughts in the comments.
Image courtesy of DX.Exchange.