MERJ Exchange Cuts Deal with FCA-regulated Globacap to Offer Tokenized Securities to EU Investors via Seychelles Stock Exchange
The first national stock exchange to list tokenized securities in Seychelles is partnering with MERJ Exchange, the UK’s first regulated platform to issue tokenized equity. London-based Globacap will distribute the securities in the UK and Europe.
“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 for MERJ to have a partner on board with the right technology, systems and approach to grasp the significance of this milestone for financial markets. Globacap are among the leaders who are really executing in this space and that resonates well with us.”
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 Seychelles plans an initial public offering of the tokens.
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 the regulatory supervision of the UK’s Financial Conduct Authority.
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, which uses distributed ledger technology for issuance and administration of tokenized securities, is a “natural fit” as both companies are applying blockchain technology to highly regulated financial markets, said Tuohy.
“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. We couldn’t be more excited to be a part of this journey.”
MERJ is in active discussions with several companies planning to list their own digital securities on the Seychelles exchange. It is also in talks with some of the largest global tech companies about long-term partnerships in areas including tokenization, custody and key management.
Situated off the coast of East Africa, 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.
MERJ has the unusual benefit that the group’s licenses extend to operating the entire pre- and post-trade infrastructure, which includes clearing, settlement, registry and depository services. This has enabled MERJ to move more quickly than its competitors in adopting a framework necessary to build a digital assets exchange.
By applying distributed ledger technology to streamline processes, MERJ expects to help reduce costs both for issuers and investors. The direct access enabled by MERJ’s infrastructure limits the need for brokers or banks, making it especially attractive in the “mobile-first” ecosystems of many emerging markets.
“We are all about merging the best of the old world with the best of the new to create a new paradigm in financial markets that builds value, trust and accessibility,” said MERJ CEO Tuohy. “We are creating processes that ultimately will democratize access to global capital markets for companies and investors.”
Listings on MERJ represent more than one-fifth of the national GDP of the Republic of Seychelles and include companies from across North America, Europe, Asia, Australia and Africa.
- Dubai’s Wethaq Partner with R3 to Digitize Islamic Capital Markets – August 29, 2019
- MERJ Exchange Cuts Deal with FCA-regulated Globacap to Offer Tokenized Securities to EU Investors via Seychelles Stock Exchange – August 29, 2019
- Ethereum Classic Labs Teams Up With iZbreaker to Construct and Launch New Platform on Ethereum Classic – August 29, 2019
- Hyper SpeedNetwork (HSN) Launches Protector Master Node Program To Build a 5G-Blockchain Ecosystem – August 29, 2019
- Canadian Bank of England Governor Mark Carney Calls for a Global Monetary System to Replace the Dollar – August 28, 2019
- Algo Capital Closes Algo VC Fund at $200 Million – Doubling Expected $100 Million – August 27, 2019
- VideoCoin Network Goes Live – August 27, 2019
- Charlie Shrem Backed Particl, Launches First Products for Sale – August 27, 2019
- Karuschain Opens Applications for Blockchain Beta Testers Among Precious Metals Mining Companies – August 27, 2019
- CEO Patrick M. Byrne Resigns From Overstock Over ‘Deep State’ Comment and Affair with a Russian Spy – Stock Rises – August 22, 2019
- Telx Technologies Launches World’s First Cryptocurrency Sim Card Wallet And Phone Number – August 22, 2019
- Chainalysis Launches Real-Time Alerts for Suspicious Transactions For 15 Cryptocurrencies – August 22, 2019
- Factom Launches New Stablecoin called PegNet Stablecoin – August 22, 2019
- HitBTC Cryptocurrency Exchange Offers Massive Rate Cuts – August 22, 2019
- American Classic Beer Miller Lite Teams Up with Blockchain Vatom Labs to Create New Customer Experiences – August 21, 2019
- WordProof and WORBLI Partner To Bring Online Content Transparency Using Blockchain Technology – August 21, 2019
- Polkadot Cuts Deal with Blockchain – 41M Wallets to get Polkadot.Network DOTS – August 20, 2019
- David Chaum’s New Quantum-Resistant Digital Currency, Praxxis, Has Arrived – August 20, 2019
- New Satoshi on the Block Plans a ‘Reveal’ – Bitcoin Community Responds – August 19, 2019
- Binance Announces Open Blockchain Project ‘Venus’ – Calls on Governments, Companies and Organizations to Develop Localized Stablecoins – August 19, 2019
Also published on Medium.