MERJ Exchange, the only licensed stock exchange in Seychelles, will be listing its own security token within the coming weeks thus becoming the first blockchain forward regulated exchange to practice what it preaches. MERJ is a member of IOSCO and adheres to FATF guidelines.
The exchange is a global financial exchange for equities, debt, and derivatives. MERJ is in the process for enabling a marketplace for security tokens, digital assets and hybrids this month.
The exchange states:
“MERJ is pioneering the next generation of global financial markets leveraging blockchain technology to create the world’s first truly global, direct access end to end regulated exchange built for the consumers of financial markets, issuers and investors.”
MERJ explains that it is using blockchain for two main use cases.
Frist, the tech will be utilized as a global asset ledger to simplify security management and interoperability. Second, blockchain tech will be used as a settlement system.
“As the technology develops and the MERJ ecosystem grows, it is likely that MERJ will eventually move securities accounts and settlement to a blockchain platform provided global interoperability is maintained or improved and all of the principles of financial markets infrastructure relating to securities settlement systems are able to continue to be met.”
And what about fraud and the immutable nature of blockchain?
Like many other exchange initiatives, there is a “controller” that can reverse transactions if a nefarious actor attempts a digital theft. This is something that most people expect to become the norm even as purists claim there is really no “decentralization.” But simultaneously, MERJ is using Ethereum claiming this will act as a global asset and settlement layer that is decentralized.
The security token offering is open to US residents who are accredited investors at a $10,000 minimum investment. MERJ is working with Fund America and Prime Trust to process all applications, AML/KYC, perform accredited investor checks and collect funds via escrow.
In the land of regulated stock exchanges, MERJ is quite small but it may be pioneering the path for all other regulated stock exchanges to follow. Switzerland, Gibraltar, Malta, London and more, are looking at advancing blockchain-based security offerings.
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