Digital exchanges like Mesh.trade have cut trading costs to 0.2% while making it possible to buy fractions of an asset. All transactions are logged on the blockchain. Stock exchanges like the JSE are getting a run for their money, says Mesh.trade MD Connie Bloem. From Moneyweb.
You can also listen to this podcast on iono.fm here.
Fresh off the listing of the Titans portfolio on the JSE comes another bit of interesting news – you can now buy the same portfolio on digital exchange Mesh.trade at a 0.2% cost, which is significantly cheaper than traditional investment channels.
There’s a 1.6% annual management fee, deducted from performance gains, that goes on top of that.
Trades are logged on the blockchain, and that comes with some impressive benefits – the ability for really small investors to get involved and buy fractions of a share or an asset.
The exchange will take trades as low as R1 if you want, says Connie Bloem, MD of Mesh.trade.
This was always the promise of blockchain investment, quite apart from the transparency, certainty and tamper-proof benefits that blockchain offers.
If South Africa is to open up the world of investment to those previously excluded, then this is clearly a major step forward. Here’s a use of blockchain that has little to do with traditional crypto investment and all the scepticism that arises among the traditional investor base.
Bloem believes this is a clear challenge to exchanges such as the JSE, which will have to adapt or perish. Digital exchanges allow for tokenisation of assets, which involves converting assets into ‘tokens’ on a blockchain – which in turn allows for fractional ownership of assets such as real estate and equities, at much lower costs than traditional investments.
This podcast presents a fascinating look into the future of investing – whether crypto or traditional investments. Bloem argues that this future is coming a lot faster than many people realise.
