CDRX Exchange Review
CDRX is an upcoming exchange for cryptocurrencies and crypto depository receipts (CDRs).
Cryptocurrency investors are spoiled for choice when it comes to exchanges. New exchanges need to offer something unique or they will struggle to fill up their order books. CDRX is unique because the exchange’s main aim is to become both the provider of CDRs and then the place to trade them. All in all, CDRX is hoping to be the premier platform for the trade of securities, but the securities being traded on it will have some unique properties.
CDRX is offering not the ability to trade securities in their existing form, but as CDRs, which are essentially tokens that represent a security, like a stock or a bond.
A crypto depository receipt can be created through a simple set of steps. Any amount of shares or bonds can be taken to a depository bank and then CDRs, which are tokens that are backed by the shares or bonds that were handed to the bank, will be emitted. A CDR is like an IOU for the stock or bond it represents; CDRX will give people the ability to trade there IOUs in the form of tokens. This makes CDRs a tokenized derivative, but unlike most derivatives, CDRs are backed by real assets.
Why use CDRs and CDRX?
Now you must be thinking why anyone would want to use an IoU for a stock or a bond if they can just trade the real thing.
Tokenization of securities is going to open a new world of benefits. The same kind of trading benefits that are available to tokens can now be applicable to securities.
Trading crypto depository receipts on CDRX will be similar to trading tokens on a typical exchange. This means the competitive fees offered by cryptocurrency exchanges will be available to just about anyone wanting to trade securities. While brokers charge high commissions by share volume or high fixed fees per entry/exit trades, CDRs will offer the low trading fees any exchange offers. It’s time the rest of the financial world gets to know how good we have it in terms of trading fees.
Aside from fees, another major benefit is that tokens can change ownership as soon as a trade is complete. This is not the case with stocks and bonds; the tokenized version of securities, though, would be able to change ownership at the same pace as the typical token.
The good thing is that since CDRs simply need a security to be deposited, this allows any existing or upcoming stock or bond to be turned into a CDR.
When we put securities and tokens in one sentence, it’s usually a reference to security tokens. On ICO Dog, we have a strong focus on security tokens, and we like to explore how far the concept of security token can be stretched. The proposition of CDRs is brilliant: it turn securities into tokens. This is where the financial world is heading. These tokenized IOU shares/bonds are premier security tokens.