FAQ

About DCLEX

What is DCLEX?

DCLEX is a stock trading and tokenization platform that brings stocks to DeFi in a fully compliant manner. Unlike traditional trading platforms, stocks are traded for USDC and can be withdrawn on the Ethereum blockchain for use in DeFi applications. Our platform offers a premium selection of 40+ tokenized stocks, including Apple, Google, and Tesla, scheduled to launch in Europe in Q1 2025.

At DCLEX, our vision is to lead the next era of finance as the standard for tokenized securities. We aim to empower investors worldwide to thrive in a more inclusive, efficient, and decentralized financial ecosystem.

What are tokenized stocks?

Tokenized stocks are digital tokens on the Ethereum blockchain, backed by shares of publicly traded companies such as Apple, Google, and Tesla. These tokens offer numerous advantages over traditional stocks, including increased divisibility, enhanced transferability, and DeFi interoperability, among other benefits.

Learn more about Tokenized Stocks

What are the benefits of tokenized stocks?

Tokenized stocks offer greater accessibility, efficiency, and transparency compared to traditional stocks. They enable fractional ownership of shares, which are traditionally indivisible and can cost thousands. They facilitate seamless peer-to-peer transfers and 24/7 trading without trusted intermediaries, enabling broader market participation.

The true innovation of tokenized stocks lies in their interoperability with DeFi, unlocking a huge market of untapped potential. As the next era of finance, DeFi presents new avenues of capital management and wealth creation through programmability and composability, paving the way towards a more inclusive, efficient, and decentralized financial ecosystem.

How is DCLEX different from traditional trading platforms?

At DCLEX, we distinguish ourselves by pioneering a stock trading and tokenization platform that seamlessly integrates with the DeFi ecosystem while fully complying with regulatory standards. Through our innovative approach to tokenized securities and regulatory compliance, DCLEX is paving the way for a more inclusive, efficient, and decentralized financial ecosystem.

Unique Value Propositions:

  • Regulatory Compliance: DCLEX introduces Digital Identities (DID) and Smart Contract Identities (SCID) as non-transferable NFTs to ensure compliance with the KYC requirement. Users must claim their DID by verifying their identity to interact with stocks on-chain, establishing a fully regulated environment at the smart contract layer.

  • DeFi Interoperability: DCLEX-issued tokenized stocks are fully compatible with DeFi applications. Smart Contract Identities (SCIDs) extend the concept of Digital Identities to smart contracts, making tokenized stocks interoperable with verified DeFi applications. This groundbreaking innovation unlocks a vast market of untapped potential, presenting novel use cases while reducing middlemen and enhancing automation.

  • Dividend Distribution: DCLEX ensures fair dividend distribution to holders of tokenized stocks. What sets us apart is our compatibility with DeFi regarding dividends. Users can provide liquidity in a DeFi application and still receive dividends directly in their DCLEX accounts, even if the tokens are not held directly in their Ethereum wallets. This implementation is a technological feat in itself.

Digital Identities

What is a Digital Identity?

DCLEX introduces Digital Identities and Smart Contract Identities to bring tokenized securities to DeFi in a fully compliant way. These are non-transferable NFTs that permit holders to interact with stocks on-chain.

  • Digital Identities: Upon successful completion of the verification (KYC) process, users can claim their Digital Identity to their Ethereum wallet. DIDs embed some data about the their owner like their tax residency and their validity status.

  • Smart Contract Identities: Issued to DeFi protocols upon review and approval of their source code. SCIDs can only be held by smart contracts that were proposed by users and approved by DCLEX. This allows tokenized stocks to be traded within a regulated and financial ecosystem.

Learn more about Digital Identities.

How do I claim a Digital Identity?

To receive your Digital Identity, you need to pass the verification (KYC) process to verify your identity and residency. To do this, connect your wallet and then press "Verify Identity."

You will need the following:

  • Government-issued identity document (driver's license, passport, etc.)

  • Proof of residency (current utility bill, bank statement with your address, etc.)

  • 20 USDC in your Ethereum wallet

How do I recover my Digital Identity if lost?

If you lose access to your wallet, you can recover your Digital Identity by re-identifying yourself on the DCLEX platform. Your DID will be transferred from your old Ethereum address to a new one.

To recover your DID, follow these steps:

  1. Log in to DCLEX with a newly created Ethereum address.

  2. Navigate to the Digital Identity page and click on "Recover my digital identity," then follow the process.

  3. Once your identity has been verified, you will receive your DID in your new wallet.

Tokenized Stocks

What stocks are available on DCLEX?

DCLEX offers a selection of over premium 40 stocks, including Apple, Google, and Tesla.

See the full list of Tokenized Stocks

Which blockchains does DCLEX support?

Tokenized stocks issued by DCLEX are currently available on Ethereum.

How do I purchase tokenized stocks?

Anyone with a valid Digital Identity can use the DCLEX platform to buy and sell stocks on the traditional stock market with USDC. To get started, you need the following:

  • Wallet (Ethereum compatible)

  • USDC on Ethereum

  • Ether (for gas fees)

  • Digital Identity by completing the verification (KYC) process.

Visit this guide for detailed instructions: Getting Started

Do tokenized stocks pay dividends?

No, tokenized stocks do not currently provide shareholder voting rights. DCLEX plans to incorporate this feature in the near future.

Learn more about Dividends

Do tokenized stocks have proxy voting rights?

Yes! Tokenized stocks are designed to be interoperable with DeFi. Tokens are only compatible with DeFi applications that have been verified by DCLEX, holding a valid Smart Contract Identity.

Learn more about DeFi.

Can I use tokenized stocks in DeFi?

Yes! Tokenized stocks are designed to be interoperable with DeFi. Tokens are only compatible with DeFi applications that have been verified by DCLEX, holding a valid Smart Contract Identity.

Learn more about DeFi

What happens when a stock splits or reverse splits?

Stock splits and reverse splits are common occurrences in the stock market, impacting share prices and quantities held by investors. DCLEX manages these events using a mechanism known as the 'multiplier.' The multiplier is adjusted for each tokenized stock to reflect any splits since listing.

For example, if a stock undergoes a 2:1 split, each share splits into two, and the multiplier adjusts accordingly. Deposits and withdrawals on DCLEX are adjusted accordingly to ensure users receive or exchange the correct number of shares and tokens. In reverse splits, users may need to acquire additional tokens to fulfil share requirements for deposit.

How do I recover my tokenized Stocks if lost?

If you lose access to your wallet holding tokenized stocks, follow these steps:

  1. Recover Your DID: Start by recovering your Digital identity associated with your wallet.

  2. Contact Support: Reach out to our support team at info@dclex.com for assistance.

Our support team will guide you through the recovery process to retrieve your tokenized stocks.

Trading Platform

What countries does DCLEX support?

DCLEX currently extends its services to all countries within the European Union.

See the full list of Supported Countries

What are DCLEX trading platform operating hours?

The DCLEX trading platform operates during US trading hours, from Monday to Friday, 9:30 AM to 4:00 PM EST. For a full schedule of US trading hours, please refer to the NYSE website.

How are tokenized stocks priced on DCLEX?

DCLEX's trading platform sources premium price feeds directly from The New York Stock Exchange (NYSE Best Quote & Trades), enabling users to buy and sell stocks at accurate market prices.

Tokens traded on the secondary market, such as Uniswap, are priced by the free market. However, tokens naturally maintain a price peg parallel to their underlying asset, as they can always be redeemed and sold on the real stock market.

What are the fees on DCLEX?

Visit this page for details: Fees

Security and Compliance

How do I know my tokens are truly backed by real-world assets?

Tokenized stocks are fully backed by a share of the corresponding asset. The underlying asset reserves are transparently held at regulated institutional custodians and undergo periodic audits, with attestations published on our website.

Visit this page for details: Transparency

Under which regulation does DCLEX operate?

DCLEX is headquartered in Canada, with branches in both France and Poland. We are fully regulated and licensed to operate within the geographical bounds of the European Union.

Visit this page for details: Legal & Compliance

How does DCLEX ensure regulatory compliance?

DCLEX prioritizes compliance with regulatory frameworks, especially regarding Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements. The platform employs robust verification processes, requiring users to submit identification documents for verification. This stringent authentication helps ensure compliance with legal and regulatory standards, fostering a secure and regulated trading environment.

Are DCLEX smart contracts audited?

Yes, DCLEX Smart Contracts were audited by leading auditor Cyfrin.

See the audit report here: Smart Contract Audit Report

Is there a token named “DCLEX”?

No, DCLEX has no plans to launch a native utility token, nor is it a public company. If you encounter fraudulent activity, please contact us immediately.

Other questions?

Have another question we didn't answer here? Ask us on Discord!

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