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Stellar Lumens: SDF invests in the DeFi exchange DSTOQ

  • The Stellar Development Foundation has completed a $715,000 investment in the Stellar Lumen-based exchange DSTOQ. 
  • DSTOQ will tokenize securities on the Stellar blockchain and offer them in emerging markets.

The Stellar Development Foundation (SDF), which is responsible for the development and growth of Stellar, today announced a strategic investment in DSTOQ Group AG based in Liechtenstein. DSTOQ is a Stellar-based FinTech project that allows users to invest in traditional stocks with fiat and cryptocurrency.

The investment was valued by SDF at USD 715.00, whereby the amount was paid in Stellar Lumens (XLM) from the newly created company fund. This was created in mid-December last year and 10 billion XLM were allocated for use case investments, with 8 billion XLM transferred to an escrow account of the Stellar Enterprise Fund and 2 billion XLM earmarked for new products, as reported by CNF.

The Stellar Enterprise Fund is a kind of venture style fund for the expansion of the network. The money will be used to acquire or invest in companies that offer potential for the Stellar ecosystem.

Stellar: DSTOQ tokenizes securities

The investment in DSTOQ is the first one made by SDF through the fund. DSTOQ aims to make investments in securities more accessible and affordable for people in emerging markets. To this end, the Stellar Blockchain-based project has developed a trading platform where users have easy access to blue chip stocks, such as those from Tesla or Amazon, as well as bonds, indices and commodities.

The securities are tokenized on the Stellar blockchain and can be traded as security tokens using fiat or cryptocurrencies. The first target market for DSTOQ will be Vietnam, followed by South Africa and other African, South American and Asian developing countries. Users of the platform only need a smartphone to access the platform and thus gain access to the global financial markets.

The innovation is in line with the vision of the Stellar Development Foundation, which aims to give people in emerging markets access to the financial system and investment opportunities. Denelle Dixon, CEO and Director of the Stellar Development Foundation, said:

At SDF, we seek to unlock the world’s economic potential by making money more fluid, markets more open, and people more empowered. DSTOQ’s sharp focus on cross-border investing and their unique approach to helping people in emerging markets to gain access to investment opportunities abroad speaks directly to our mission at SDF. Together, we hope to improve the lives of millions of people while simultaneously creating exciting new business opportunities.

Craig Mc Gregor, CEO and co-founder of DSTOQ, commented on the investment by SDF:

We are grateful for SDF’s vote of confidence and continued support towards our shared vision of building and improving the global financial system. Together, DSTOQ and SDF aim to improve financial inclusion in markets that desperately need better access to global products. For too long these markets have been ignored – we look forward to changing that with this exciting technology.

As stated in the official press release, DSTOQ will provide further insight of the development progress in the coming months. The company will also announce a new partnership with an innovative European bank with strong ties to Asia.

The tokenization on the Stellar blockchain is not a new use case. About two weeks ago, it was announced that one of the oldest German banks, von der Heydt, is using the Stellar Lumens blockchain to tokenize securities. In contrast to DSTOQ’s commitment, however, von der Heydt will only offer the securities tokens to institutional customers via private placements.

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About Author

Jake Simmons

Jake Simmons has been a crypto enthusiast since 2016, and since hearing about Bitcoin and blockchain technology, he's been involved with the subject every day. Beyond cryptocurrencies, Jake studied computer science and worked for 2 years for a startup in the blockchain sector. At CNF he is responsible for technical issues. His goal is to make the world aware of cryptocurrencies in a simple and understandable way.

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