HONG KONG, CHINA / ACCESSWIRE / May 7, 2020 / Hong Kong trust company DaoTrust successfully issued the first digital stock MFHD through its digital stock service platform (www.superstock.io). According to official information, entrusted by MFH shareholders, SuperStock has digitized Nasdaq-listed stock (ticker symbol MFH) through blockchain technology and has successfully issued a digital stock MFHD that 1: 1 backed with the underlying stocky. In the first stage, total 500,000 MFHD tokens will be issued in three batches respectively from April 2020 with 150,000 tokens, May 2020 with 150,000 tokens, and June 2020 with 200,000 tokens.
“As delegated by MFH shareholders, we have conducted a detailed due diligence on the enterprise value and ecosystem of MFH. After our rigorous internal evaluation , we used smart contracts on blockchain technology to digitize MFH, backing 1: 1 with, which allow holders to trade anytime and anywhere. “The speaker from DaoTrust emphasized: ” In the future, MFHD can be used in its entire digital ecosystem, which will be allowed for payment and settlement within its commercial system. In other words, it is empowered with the character of stock currency. Now we are in an active conversation about it. “
As the issuer of MFHD, DaoTrust holds the ownership of the underlying stock MFH. From minting, transfer to redemption, the full cycle is audited and disclosed by third-party companies. Holders can trade and redeem at any time through SuperStock MFHD is 1:1 backed with MFH, which means 1MFHD is equivalent to 1MFH stock. It is reported that the MFH Group is building a digital ecosystem of digital asset transactions, asset digitization, cross-border remittance and other relevant businesses, and has successfully acquired Digitization and NBPay platform.
Why should stocks be digitized? What are the advantages compared to traditional stocks? Traditional stocks need to abide by the rules of the traditional stock market. As for holders, they can only trade when the market opens, and sometimes miss the best trading opportunities. As for listed companies, the stock price is easily affected by the market and its market value will be greatly impacted. Especially in a bad environment, the stock price may lead to rapid evaporation of market value. Holders of digital stocks can trade at any time throughout the day 24/7. Digital stocks that have been given payment attribute can be circulated freely in their business, so that holders can quickly switch asset types based on their needs. In terms of listed companies, the corresponding digital stocks can fully circulate in their capital markets and consumption scenarios. The sensitivity of consumers and investors to prices will also affect the liquidity of stocks. In this way, the market value of an enterprise will be linked to its own business capabilities, which can effectively combat market fluctuations.
The digital stock MFHD issued by DaoTrust is highly compatible with the MFH Group’s digital strategy, especially in promoting the realization of its “Mercury Plan” and the establishment of a digital ecosystem. Meanwhile, the payment attribute also helps promote the sustainable development of the digital economy.
SOURCE: Dao Trust Limited
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