Seychelles Exchange To IPO Equity Security Tokens
In a move to shape the future of financial markets, the first national stock exchange to list tokenized securities today announces its partnership with the UK’s first regulated platform to issue tokenized equity.
MERJ Exchange beat rivals to become the first fully-regulated exchange globally to list equity-security tokens in August. Now, the national stock exchange of the Seychelles plans an initial public offering of the tokens. It will partner with London-based Globacap to distribute the securities in the UK and Europe.
The alliance brings together two companies intent on introducing international governance standards and safety nets to the world of digital assets through fully compliant end-to-end infrastructure. In 2018, Globacap became the first company to issue an equity-security token under supervision of the UK’s Financial Conduct Authority.
“We will be the first entity anywhere in the world to hold an initial public offering of security tokens,” said Edmond Tuohy, CEO of MERJ Exchange. “For this ground-breaking event, it is essential to have a partner on board with the right technology, systems and approach to grasp the significance of this milestone. Globacap are among the leaders who are really executing in this space and that resonates well with us.”
With 8.7 million of its own shares listed on the Seychelles exchange in tokenized form, MERJ plans to offer 16% of the company’s share capital in its IPO, set for next month.
“Globacap and MERJ share a sense of mission to bring the efficiency and cost benefits of distributed ledger technology to the regulated financial markets arena,” said Globacap Founder and CEO Myles Milston. “MERJ has demonstrated unquestionable leadership and its IPO will be a landmark event in bridging regulated financial markets and the world of digital assets.”
The Seychelles exchange developed as a result of the IMF and World Bank working with the island’s government to build a financial services sector while coordinating with agencies like the OECD and FATF to ensure compliance with the highest international standards. An affiliate member of the World Federation of Exchanges, MERJ is licensed by the Seychelles Financial Services Authority, which is an associate member of IOSCO.
Exchange groups seek to tap into increasing institutional interest.
The platform supports the transaction lifecycle of digital assets and tokenized markets.
The technology creates a platform for new digital asset and alternative asset class models.
The new venue hopes to attract 15 to 20 listings over the next year.
Nasdaq’s Market Technology business will use R3’s enterprise blockchain software Corda.