Blockchain technology and cryptocurrencies especially are becoming critical players in the development of modern technological solutions. The curiosity with industries, companies, and individuals to use to innovation in finance is proving to have far more reaching implications than thought before.
Looking forward to leveraging the power of blockchain is the DSTOQ concept. With the popularity of cryptocurrency rising the DSTOQ project is hoping to leverage the technology to create an efficient and low-cost entry into the existing stock exchanges for the average investors. The idea is a combination of crypto entrepreneurs and veterans looking to enable individuals to trade security tokens.
About DSTOQ Exchange
DSTOQ is a blockchain-based stock exchange platform with the goal of enabling investing in real-world security tokens by using cryptocurrency. The decentralized exchange will hope to demonstrate a technological shift to security token trading by utilizing Blockchain’s fast execution and settlement time. The licensed stock trading platform also intends to credit users with the capability to trade different security tokens such as equities, gold, oil, bonds, and ETFs through virtual currency.
Basics Of How It Works
As it stands, DSTOQ is bound to use the Stellar blockchain as the foundation to deliver its integrated Proof of Concept. Additionally, the blockchain foundation will enable the peer-to-peer security asset trading with the trades and settlements said to take between 2-5 seconds. DSTOQ also intends to make the transaction process faster than the traditional stock exchange and with the blockchain producing up to 100,000 more speed in their processing. The withdrawals are expected to take 2-5 days from the initial claim by the user.
What’s Different With DSTOQ?
Unlike other stock trading platforms, DSTOQ has plenty to offer with the use of blockchain. Here are the possible gains from using it.
- Variety Of Assets: DSTOQ utilizes the blockchain innovation to tokenize different classes of asset securities. These tradable assets will include oil, gold (precious metals), equities, and stocks and are set to be traded through the DSQ token.
- Decentralization: Decentralization is the utmost gain users should expect from the DSTOQ platform. The nature of blockchain allows the users to remain in full control of the assets, trading process and communicating.
- Low Fees: DSTOQ promises to charge small fees to users intending to trade through their platform. Although the precise values are not yet out, DSTOQ would consider negligible trade fees such as 0.20 to 0.25% as part of the platform's charges.
- Dual Currency Use: While DSTOQ firmly emphasizes on investing using cryptocurrency, the exchange still accepts payments in fiat currencies from users (USD and EUR)
Are There Any Risks Involved?
Like any crypto investment option, there is plenty of risks that come with using DSTOQ as a stock exchange option. The obvious risks are the possibility of legal and compliance actions since the use of cryptocurrency is still very much unregulated. Additionally, DSTOQ is yet to release any valuable information about the platform with matters such as payment methods and the amount of client leverage available still missing.
Our Conclusion On DSTOQ
Overall, the goal of finally combining crypto to our stock exchange is far from reality despite blockchain technology rapidly transforming our financial services. Still, it would not be wise to write off DSTOQ just yet, as it still provides an efficient solution for securities trading compared to traditional methods.