Global Token Exchange Stock Goes Public
Posted by invest on December 7th, 2022
Earlier this year, MERJ traded its own equity as a security token in Q3 of 2019. It is not the first time that a token exchange has done this, but it may be the first time that a global token exchange stock has gone public. As more and more of these exchanges launch, it is likely that more of them will become publicly traded, and investors will start to take a closer look at the potential for tokenization.
MERJ traded its own equity as a security token in Q3 2019
MERJ, a Seychelles-based securities exchange, recently announced the first regulated security token to be traded on its national stock market. It also launched the world's first successful secondary market trade of a real estate equity digital security. MERJ plans to leverage its technology to streamline the issuance and distribution of digital assets.
The MERJ EXCHANGE is an award-winning company with a solid growth story. In the first quarter of 2019, MERJ EXCHANGE's total market capitalisation surpassed billion for the first time in its seven-year history. In addition, MERJ EXCHANGE was named a member of the World Federation of Exchanges, an organization that recognises innovation and best practice in the financial sector.
MERJ EXCHANGE has also been named a member of the Association of National Numbering Agencies (ANNA), an organization that upholds ISO principles and fosters standardisation in the financial sector. MERJ's logo reflects the cutting edge technology utilised in its services. MERJ is one of the fastest growing exchanges in the world.
Blockstocks, DigiShares, Jibrel and Jibrel are token exchanges
UPRETS is a leading real estate tokenization platform that has entered into a partnership with DigiShares. The two will work together to offer security token offerings to European investors. The security token offering will be managed by DigiShares with the support of UPRETS' parent company and other partners from the DigiShares network.
Security tokens, also known as tokenized securities, are a new category of digital assets that are issued by companies, investment funds, and entities. They are generally less expensive to issue than initial coin offerings, and are considered more secure than ICOs.
Security token companies provide services such as custody solutions, legal advice, and secondary trading exchanges. Together, these companies are forming a more secure, efficient, and transparent blockchain-based infrastructure.
DigiShares' white-label platform allows real estate developers and investors to manage groups of owners in a secure, efficient manner. It supports customized on-boarding and marketing workflows, and provides a built-in OTC marketplace for trading security tokens.
Japan Exchange Group (JPX) and Japan Securities Depository Center plan to pilot a blockchain platform for sharing securities post-trade information
Earlier this year, Japan Exchange Group (JPX) launched a request for quote (RfQ) platform, which allows digital trading activities. In the first quarter of 2020, the exchange plans to begin testing a blockchain platform for sharing securities post-trade information. This could help improve the accuracy and speed of post-trade processing and may reduce intermediaries. In addition to JPX, several other Japanese financial institutions are participating in the pilot.
JPX plans to share the results of the pilot with the securities companies, who will be invited to participate. The plan is to use the platform to enhance transparency, security and operational efficiency of bond issuance. In addition, the company is planning to launch a security token exchange in the second half of 2020.
The Longbond program has an estimated target size of around USD 3 billion. The bonds issued will be fully secured obligations. These will be accessible to retail investors, who will be able to trade them on the FUSANG Exchange prior to maturity.
Future securitization expected for global token exchange stock
Whether or not future securitization will take place on the global token exchange stock remains to be seen. While OKCOIN and SharesPost have launched their exchanges, no official announcement has been made by either company. There is also no information on whether the exchange has received regulatory approval from any of the federal or state securities commissions. The only way to know for sure is to do your own due diligence. This is particularly true of start-up investments, which are highly speculative and prone to market manipulation risks.
Although it is not clear whether the exchange will support trading of security tokens offered under exemption from registration for public offerings, it is clear that the company will provide support for private liquidity pools for issued tokens. It is also expected that the exchange will support the resale of private equity ownership in unicorn companies. It is also expected that the exchange will provide services for both traditional securities exchanges and new crypto exchanges.
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Joined: October 5th, 2022
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