Currently, the amount of on-chain crypto assets is only a tiny fraction of the total off-chain asset value. Despite the initial success of the tokenization of a few arts and stocks in a very limited scope, on-chain tokenized assets are still minuscule with significant room for accelerated growth given the right infrastructure.
NASDEX The Premiere Tokenized Equity DEX
NASDEX is a decentralized exchange for the trading of tokenized equities on the blockchain. It is designed to serve as a bridge between the worlds of crypto and equity. The team behind NASDEX believes that the on-chain adoption of the equity asset class will deliver increased accessibility with improved capabilities for both the crypto and the equity investor.
NASDEX will be tapping into the equity asset class market in its entirety, which is around USD 100 trillion market cap. This is a market with a size over 60x the size of the current total crypto market cap. The successful tokenization and on-chain trading of the equity asset class opens the gate for further tokenization of additional off-chain assets such as commodities, bonds, real estate, etc.
Target Market TAM
In the initial stages, NASDEX will target a sizable under-served niche in tokenized Asian equities trading for Asian investors. The total market cap of Asian equities is currently around USD 30 trillion, which is absent in the tokenized space. Given that, NASDEX plans to bring households and Asian names onto blockchain and thus becoming the premier exchange for the trading of tokenized equities.
The initial draw of the unique set of tokenized Asian equities satisfies a missing investment tool for investors. It is designed to trigger the positive feedback loop with increasing liquidity and user engagement on NASDEX. As an exchange, NASDEX’s success and monetization are based on the volume traded, and heavily dependent on robust user engagement.
To encourage user engagement, the community and NASDEX token holders will have control over the decentralized exchange in the later stages. The community will be the key decision-makers deciding whether to add additional markets, stocks, and features. As a result, the TAM could further expand to include equity markets globally, with a total market cap of USD 100 trillion.
Essentially, every off-chain asset could potentially be tokenized and traded through NASDEX, subject to the approval of the community.
Blockchain technology and tokenization adoption are proliferating throughout the world, and the future trading of additional tokenized assets should be expected for NASDEX.
Regulatory Environment Presents Opportunities
Aside from the growth potential, the current regulatory environment is a double-edged sword for NASDEX. As of now, there is a lack of clarity in terms of tokenized equities from a regulatory perspective. However, the same could be said for the entire crypto and DeFi space.
On the one hand, this lack of regulatory clarity introduces uncertainty in the industry. Yet, on the other hand, this uncertainty discourages new entrants into the markets, which leaves the entire playing field empty for committed existing players like NASDEX. NASDEX has sought out legal opinion and is committed to staying fully compliant with any regulations globally. Regulations often lag innovative breakthroughs in the marketplace.
Innovation is Key
Ultimately as an innovator, NASDEX seeks to address some of the pain points of the traditional equity investing experience and add on new features that are native to DeFi and crypto. For example, in addition to the 24/7 trading and fractionalized token trading that is common to crypto, NASDEX will enable the seamless re-balancing between the user’s tokenized equity exposure with the user’s crypto exposure, without the need to convert the user’s crypto portfolio into fiat inefficiently, and then into equity. The ability to conduct portfolio rebalances efficiently and quickly will be crucial for any trading platform, given the increased volatility in the investment landscape.
In addition to improved user experience, NASDEX also promises to deliver increased returns for users as well. Users could elect to stake their tokenized equities on the NASDEX platform to participate in yield farming and liquidity, providing rewards resulting in potentially additional double-digit returns for NASDEX users. In a world where bond yields are stuck near zero and the average equity dividends are minuscule, an additional double-digit return should be an extremely attractive feature on NASDEX.
NASDEX is led by an experienced non-anonymous founding team composed of industry veterans across disciplines, including experiences in blockchain, DeFi, marketing and investments. The project is seeded and incubated by Zero2launch, a VC with a successful track record of launching and advising on crypto startups. A MVP (minimum viable product) is slated to launch in Q4 of 2021. Also, an IDO is planned for Q3-Q4 of 2021. The initial product is designed to launch on Polygon with plans to launch on multi-chain in the future.