Digital securities convert rights to an asset into a digital token on a blockchain. They transform private securities by making capital formation faster, easier, and less expensive while unlocking secondary liquidity (and value) for investors.
Records Management Network
Your asset and ownership records are digitally secured and maintained on the XDEX Network, which has a private, permissioned blockchain ledger at the core.
Once someone creates, sells, or buys assets that have been designated as XDEX tokens, nobody can erase, falsify or change any record related to any action or transaction related to that asset. The data cannot be altered or manipulated by a single actor. Auditing will become greatly simplified in the future because the ledger provides the assurance of the action taken and transaction data trail.
Assets designated as XDEX-based tokens can be accessed from any place in a world, 24/7 via a web application or even a smartphone app.
Assets registered on the XDEX network as fractionalized tokens represent the promise of greater liquidity through smaller ticket transactions of highly-fractionalized ownership positions, which increases the expected value from trade and eliminates the need for minimum investments. Fractional ownership can increase portfolio diversification and spreads risk as investors can now co-own many diverse assets at once.
Faster Transaction Execution & Settlement
Transactions can be settled in near real-time, especially with XDEX, which can handle 100k transactions per second at scale.
In many cases, tokenized assets can eliminate the middlemen intermediaries, which often limit investment accessibility and venues of trade.
XDEX eliminates the common problem of asymmetry of information present during the due diligence, buying or selling, and transfer of ownership.
Provides liquidity to private assets that currently find it difficult and costly to match buyers and sellers. Investors can trade real-world assets that due to their low liquidity would have been difficult to exchange in the past. The illiquidity discount can be as high as 30%, which significantly reduces the overall valuation of the asset.
The result of a common data system of record used by every participant in the network, the documents and information can be automated. The trust of the discreet accounts, identities, entities, assets and transactions is inherent, so tight integration to operational systems is now possible. This means processes can be automated, reducing cost and capital inefficiencies. Transferring assets in volume, at scale is effortless.
Programmable Compliance & Reporting
Regulatory compliance at the jurisdictional level can be coded into the logic of software. This reduces the chances of error, the cost of compliance and reporting. Over the life of any security, this could represent a significant amount of overhead reduction as the regulatory environment evolves to bring that efficiency.
Presently, many high-value investments are not accessible by a large percentage of the global population. New models of capital formation secured by distributed ledger blockchain technology represents an evolution to global capital markets and capital mobility.