MERJ Exchange Cuts Deal with FCA-regulated Globacap to Offer Tokenized Securities to EU Investors via Seychelles Stock Exchange

MERJ Exchange Cuts Deal with FCA-regulated Globacap to Offer Tokenized Securities to EU Investors via Seychelles Stock Exchange
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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.

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“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.

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About Richard Kastelein

Founder and publisher of industry publication Blockchain News (EST 2015), a partner at ICO services collective Token.Agency ($750m+ and 90+ ICOs and STOs), director of education company Blockchain Partners (Oracle Partner) – Vancouver native Richard Kastelein is an award-winning publisher, innovation executive and entrepreneur. He sits on the advisory boards of some two dozen Blockchain startups and has written over 1500 articles on Blockchain technology and startups at Blockchain News and has also published pioneering articles on ICOs in Harvard Business Review and Venturebeat. Irish Tech News put him in the top 10 Token Architects in Europe.

Kastelein has an Ad Honorem – Honorary Ph.D. and is Chair Professor of Blockchain at China’s first Blockchain University in Nanchang at the Jiangxi Ahead Institute of Software and Technology. In 2018 he was invited to and attended University of Oxford’s Saïd Business School for Business Automation 4.0 programme.  Over a half a decade experience judging and rewarding some 1000+ innovation projects as an EU expert for the European Commission’s SME Instrument programme as a startup assessor and as a startup judge for the UK government’s Innovate UK division.

Kastelein has spoken (keynotes & panels) on Blockchain technology in Amsterdam, Antwerp, Barcelona, Beijing, Brussels, Bucharest, Dubai, Eindhoven, Gdansk, Groningen, the Hague, Helsinki, London (5x), Manchester, Minsk, Nairobi, Nanchang, Prague, San Mateo, San Francisco, Santa Clara (2x), Shanghai, Singapore (3x), Tel Aviv, Utrecht, Venice, Visakhapatnam, Zwolle and Zurich.

He is a Canadian (Dutch/Irish/English/Métis) whose writing career has ranged from the Canadian Native Press (Arctic) to the Caribbean & Europe. He’s written occasionally for Harvard Business Review, Wired, Venturebeat, The Guardian and Virgin.com, and his work and ideas have been translated into Dutch, Greek, Polish, German and French. A journalist by trade, an entrepreneur and adventurer at heart, Kastelein’s professional career has ranged from political publishing to TV technology, boatbuilding to judging startups, skippering yachts to marketing and more as he’s travelled for nearly 30 years as a Canadian expatriate living around the world. In his 20s, he sailed around the world on small yachts and wrote a series of travel articles called, ‘The Hitchhiker’s Guide to the Seas’ travelling by hitching rides on yachts (1989) in major travel and yachting publications. He currently lives in Groningen, Netherlands where he’s raising three teenage daughters with his wife and sailing partner, Wieke Beenen.

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Agustin Sanchez