DX, which is scheduled to be launched during the next month, is the first cryptocurrency exchange powered by the technology provided by the U.S.-based Nasdaq exchange, reports Finance Magnates. The development comes on the back of reports that NYSE's parent, ICE, is planning a bitcoin exchange, indicating the increasing interest by leading stock exchanges to grab a piece of the cryptocurrency marketplace.
DX defines itself as the complete solution to the cryptocurrency community, including institutions as well as individuals transacting or investing in virtual tokens. It will allow participants to seamlessly buy and sell cryptocurrencies with fiat currencies and trade one cryptocurrency token with the other. Additionally, the exchange also offers facility to hold the cryptocoins for the participants and offers wallet services.
Harnessing the technical expertise of Nasdaq trading engines and combining it with the in-house technology, the DX platform boasts of having the potential to become the leading cryptocurrency marketplace. It will launch its services in June with the six most popular cryptocurrencies, including bitcoin (BTC), bitcoin cash (BCH), ethereum (ETH) and litecoin (LTC). In the future, many more cryptocoins are expected to be added, which may also include smaller tokens.
One Low Standard Monthly Fee
“We are supporting blockchain technology. And the way we can help this ecosystem to progress is by vetting the tokens and making sure the good ones are promoted. We are not going to list coins just because they pay us. Those who are worthy—will be listed,” said DX’s co-founder and CEO Daniel Skowronski. He has earlier served as the CEO and managing director of OANDA (Europe and America), a leading provider in currency data, forex and CFD trading that offers services of leveraged trading, payment and data to businesses and investors.
The platform has a unique pricing model where the user will not have to pay any trading fee for dealing in crypto trades. Instead, they will be required to pay a standard monthly fee of around 10 euros.
The exchange claims to have connectivity to a financial news network, allowing users direct access to cryptocurrency related news and data feeds. The platform also features a secure messaging system by which various users can easily interact and exchange views with each other in a secure environment. Basic details of cryptocurrencies, like access to an official whitepaper, will be available directly from DX.
Not Currently for US Customers
DX offers advanced trading features including algorithmic trading. Using the available Nasdaq APIs, one can configure the trading strategies in the charting suite as per needs. The platform offers seamless access even on mobile phones with easy to use interactive interface.
“The advantage of this cooperation is threefold: the brand name, the technology and the regulations,” said Skowronski.
As of now, the services of DX cryptocurrency exchange will not be available to the U.S. customers. However, the exchange is reported to be in talks with U.S. regulators for securing a federal license to serve the U.S.-based clientele.
Based in Tallinn, Estonia, DX states on its website that it is regulated by the Estonia Financial Supervision Authority under license number FVR00051 to provide services for exchanging a virtual currency against a fiat currency, and under license number FRK000039 for the E-wallet service. (See also: Nasdaq Could Become Crypto Exchange.)
Investing in cryptocurrencies and Initial Coin Offerings ("ICOs") is highly risky and speculative, and this article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies or ICOs. Since each individual's situation is unique, a qualified professional should always be consulted before making any financial decisions. Investopedia makes no representations or warranties as to the accuracy or timeliness of the information contained herein. As of the date this article was written, the author owns no cryptocurrencies.