DX. Exchange is halting operations as it looks for a buyer.
The company, which provided tokenized shares in firms listed on the Nasdaq stock exchange, revealed the news following a vote by its board on November 4 to end operations as it seeks after “a merger or outright sell of the company.”
Should a purchaser not be discovered, “the exchange may not resume operations,” the firm said. Deposits have been suspended and clients have until November 15 to withdraw funds.
“The costs of providing the required level of security, support and technology is not economically feasible on our own,” the company said in a statement.
At its January 2019 launch, clients could purchase tokenized shares in Google parent firm Alphabet, Apple, Amazon.com, Tesla, Facebook, Baidu, Microsoft, Netflix, Intel Corporation, and Nvidia.
DX.Exchange’s transitory closure comes following Circle’s spin-off of Poloniex two years after the fintech company bought the exchange for $400 million. Circle co-founders Jeremy Allaire and Sean Neville stated they intend on moving concentration towards its USDC stablecoin and SeedInvest crowdfunding platform. An unnamed Asia-based investment group, Polo Digital Assets, Ltd., acquired the exchange.