After several months of development and careful compliance review by internal and external stakeholders, 55 Global Markets is officially launching a new asset category for global investors, adding high quality tokenized stocks to one of 55’s sub-market – Stock Token Market.
January 8, 2019 —
After several months of development and careful compliance review by internal and external stakeholders, 55 Global Markets is officially launching a new asset category for global investors, adding high quality tokenized stocks to one of 55’s sub-market – Stock Token Market. These blue-chip securities and corporate shares can be traded 24/7/365 using token as a vehicle.
In 1553, the United Kingdom established the Muscovy company with a stock pool. It allowed for anyone to buy shares openly. Once shares were purchased, the purchaser then acquired the status of “member of the company”. Perhaps the founders of the Muscovy company would not have imagined how, after several centuries, the stock market would be born and grow to its current size. According to statistics, there are currently more than 60 stock markets around the world, of which 16 have a market value of more than 1 trillion US dollars.
If you asked those stock investors what the biggest difficulty they face is, most would answer “time”. In the case of the United States, the major US stock markets open at 09:30 ET on working days, close at 16:00, and are not open on holidays. This means that these markets are actually trading for less than 15% of the year. Unfortunately, when markets are closed, the world keeps turning, and investors are powerless to take action in volatile market conditions outside business hours.
Traditional stock market trading allows stocks of trillion-dollar assets to flow only 15% of the time and remain idle for 85% of the time. Quantitative trading system and assets (which have accounted for one-third of all stock trading) also mimics the traditional stock exchange by being idle 85% of the time. Why?
It is all due to tradition.
The NYSE opened in an era of paper trading which required a lot of calculation and archiving work after the market closed. Without these ‘office hours’ after the marked had ceased trading, the NYSE could not have completed the backlog of paperwork. Although electronic trading has since replaced paper, calculation work still takes time. The consequence is that investors are not in control of their investments at all times.
How could we overcome the obstacle of “Time”?
If blockchain technology and cryptocurrency did not exist, the above question would remain an unanswerable one. However, Nakamoto’s Bitcoin, and later ETH, XRP, etc., opened up a 24/7, never-ending cryptocurrency trading market which has become the standard and consensus for cryptocurrency transactions.
With the rise of domestic speculation in 2017, ordinary investors began to understand this important technology and its implications. Ordinary investors watched virtual currencies skyrocket and plunge in the middle of the night, making fortunes and losing investments… Naturally, with the enthusiasm this speculation brought at the time, the advanced nature of blockchain technology was neglected. From big investors and entrepreneurs, to ordinary speculators, everyone was chasing the so-called “thousand times coins” and “hundred times coins”.
Ordinary investors certainly have the right to do this, but for entrepreneurs in this industry, especially the founders of trading platforms, it demonstrates a lack of perspective. Certainly, what is needed is for industry practitioners to be fully invested in the technology itself. With forward-looking innovation, the future of crypto could be bright indeed. At present, there is no universal conclusion about crypto currencies, however, this has not stopped a new era of stock exchange from cropping up. The transformation of stocks into tokenized stocks using blockchain technology, and the online trading of tokenized stocks could completely revolutionize the traditional stock market as we know it today.
55 Global Markets, a global asset trading platform, is leading the world into tokenized stocks. 55 Global Markets and its partner Mercurity, have developed the world’s first trusted asset tokenization network. This network selects the world’s best stocks, creating a globally connected and unified, transparent, low-friction stock exchange asset trading network. This network is tokenizing mainstream stocks that feature on the global stock exchange market, allowing for 24/7 online trading. What changes does this bring to traditional stock investors? What changes does this bring to quantitative institutional investors? Not only is the obstacle of time overcome, but geographical restrictions are also slowly being reduced.
The market created by the assets of the New York Stock Exchange (18.5 trillion) and Nasdaq (7.4 trillion) is immeasurable. From the moment it goes online, 55 Global Markets stock tokens will include Amazon, Apple, Tencent, Starbucks and Tesla.
The tokenized stocks and shares on 55.com are digital assets subject to federal security regulations. 55 Global Markets, in cooperation with its partner Mercurity (The World’s First Blockchain-Based, Verifiable Asset Tokenization Network), through collaboration with licensed broker-dealers and depository companies, stock can be tokenized on a 1:1 basis by holding them in trust accounts. Tokens can then be traded with other investors, and converted back to stock under new investor accounts through licensed broker-dealer partners. All assets tokenized by Mercurity will be held in trust by licensed custodians in their respective jurisdictions worldwide to protect the security of the underlying assets, whilst preventing the risk of damages or losses by the asset owner.
Today, it is difficult to imagine a 6.5 hours/5 days-a-week cryptocurrency exchange, trading like a traditional stock exchange. The powerlessness and inability of the market to operate 85% of the time would be overwhelming. Change is certainly coming. We cannot & want to return to the dinosaur era of 6.5 hours/5 days-a-week traditional stock exchange.
55 Global Markets products and services described herein is not available in all jurisdictions and is subject to change from time to time. 55 Global Markets is committed to legal compliance and certain 55 Global Markets products and services described herein may not be available in your jurisdiction. 55 Global Markets reserve the right to change and update its products and services from time to time in each jurisdiction to comply with applicable law and regulations in its sole discretion.
Name: Media Relations
Organization: 55 Global Markets
This news is published on Reuters.