How DSTOQ makes investing easy and affordable on Stellar

By tokenizing and issuing high-quality securities on Stellar, DSTOQ provides users access to cross-border investing from anywhere in the world, giving them a way to grow, protect, and diversify their wealth.

Company
DSTOQ
use case
Access to Tokenized Assets
Industry
Fintech
Country
Liechtenstein

About

DSTOQ

DSTOQ makes use of tokenization and digital asset issuance on Stellar to provide US-grade securities like Tesla, Google, and Apple stock on their consumer-facing app and B2B API integration to make investing accessible, affordable, and available to anyone with a mobile phone.

Challenge

Those who live in high-income economies can easily access high-quality securities and other investment opportunities compared to the rest of the world. In the United States, residents can invest in securities such as Tesla or Apple shares via traditional financial institutions or consumer mobile apps. They do this in order to grow, diversify, or protect their wealth — for the short, medium, and long-term.

Yet, cross-border investing remains costly and largely unavailable to emerging markets. Without the ability to hold best-in-class assets for growing, diversifying, or protecting wealth, many of these populations are left holding onto money whose value diminishes over time, especially in high-inflation countries. These populations simply haven’t had access to the same financial services as those in high-income economies.

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“We wanted speed. We wanted low transaction costs. And we wanted to enable users to trade peer-to-peer on a global basis. And we found the Stellar blockchain, which provided all of those things.”
Craig Mc Gregor
CEO & Co-founder · DSTOQ

Solution

DSTOQ identified this problem and offered their own answer: increasing worldwide access to high-quality securities via tokens on Stellar and transacting these tokens on a borderless digital interface. On top of tokenization, DSTOQ focused on building a user app for retail consumers and API-integration functionality for third-party partners. 

To provide a global solution that allows for easy investing in world-class assets while cutting out the intermediaries, DSTOQ realized that blockchain technology would play a pivotal role. After exploring which blockchain to build their solution on top of, they settled on Stellar for the following reasons:

Speed

  • To make the interface as user-friendly as possible, DSTOQ prioritized speed. The user doesn’t even need to know that DSTOQ is built on blockchain because transacting and trading on Stellar happen so fast.

Low Transaction Fees

  • Transaction fees on Stellar are incredibly low — a single transaction only costs 0.00001 lumens, currently less than a ten thousandth of a US cent. As a result, DSTOQ has significantly pared down high costs associated with traditional cross-border investing, and their retail users don’t have to pay any user fees.

The Stellar Decentralized Exchange (DEX)

  • Stellar also serves as a decentralized distributed exchange (DEX) of any type of asset people have issued on the network. The ledger keeps track of users' account balances and the offers they make to buy or sell assets. The DEX being built on the protocol level means that no entity acts as a blocker to trading and transacting on Stellar. Offers can be matched instantly at all times.

Security

  • Stellar favors safety over liveness, which means that the Stellar network will never fork. Since Stellar deals with real world representations of securities and the legal liabilities attached to them, users trading securities represented on Stellar never have to worry about competing chains on the network and who is the legitimate owner.
  • The Stellar Consensus Protocol features asymptotic security, which builds upon a function that can be tuned in a way with an algorithm that cannot be cracked by existing computing powers. Theoretically put, the SCP algorithm could be tuned forever. In turn, asymptotic security neutralizes 51% attacks — a plausible threat if attackers are after securities rather than native tokens.
Craig Mc Gregor

CEO & Co-founder · DSTOQ

Results

100%
month over month growth in customers’ account size
10k+
monthly active customers
300k+
new customers investing through B2B partners

By providing an easy-to-use global solution, DSTOQ has made investing available to demographics new to it. An emphasis on both education, with DSTOQ’s e-learning courses on the basics of investing, and user experience, powered by Stellar, has attracted those who seek financial freedom and security.

For instance, 65% of DSTOQ users in Brazil identify as women – a metric that matches the trend of 170% YoY growth of female investors in Latin America. With more than 25,000 downloads in the product’s first two months and 10,000 active users monthly, DSTOQ is well-positioned to grow its presence beyond the 15 countries its users are already in.

After seeing success with their B2C product, DSTOQ has developed B2B API integrations to help businesses give their customers access to investing. By integrating these API endpoints into their own apps and services, businesses can leverage the power of Stellar while providing their users a seamless experience that doesn’t involve navigating blockchain – and it only takes a few days to integrate. Through these APIs, more than 300,000 new customers are now investing through DSTOQ’s B2B partners, including LOBSTR, StellarPort, and Jefa.

For a real business to scale up to billions and billions of dollars in assets under management, you don't want to have a system where the whole thing could be hacked and fall apart super easily. That happens once, and that's it. Your company is done. And so, Stellar, not being Turing-complete and just having security features, all of which happen to be the exact features we need, is for us a massive plus.”

Craig Mc Gregor

CEO & Co-founder · DSTOQ
The fact that Stellar had a decentralized exchange was a huge benefit to us. Our speed to market was drastically improved by the fact that Stellar had the DEX on the protocol level. You can literally have a global exchange that no one is hosting. Offers are flying around the world and someone else can match that up instantly at any point in time, 24/7. Compared to how normal investing works, it's like chalk and cheese. You can't even compare them.”

Craig Mc Gregor

CEO & Co-founder · DSTOQ

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