MERJ Exchange, the national stock exchange of Seychelles, will partner with Globacap, a capital markets platform for digital securities, to offer tokenized assets to EU and UK investors. Globacap is regulated by the UK Financial Conduct Authority (FCA).
MERJ will be offering securities in its own company and claims to be “the first national stock exchange to list tokenized securities.”
As Crowdfund Insider previously reported, 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 2018, Globacap became the first company to issue an equity-security token under the supervision of the FCA. Globacap was also a participant in the FCA Fintech Sandbox during Cohort 4.
Advised by Hogan Lovells, Globacap reports that it has created a public blockchain that adheres to UK company and securities law.
Edmond Tuohy, CEO of MERJ Exchange, commented on the announcement claiming MERJ will be the first entity anywhere in the world to hold an IPO of security tokens.
“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 is among the leaders who are really executing in this space and that resonates well with us.”
According to MERJ, with 8.7 million of its own shares listed on the Seychelles exchange in tokenized form, the company plans to offer 16% of the company’s share capital in its IPO, scheduled for next month. Globacap uses distributed ledger technology for issuance and administration of tokenized securities and is described as a “natural fit.”
Globacap Founder and CEO Myles Milston said the two companies share a sense of mission of bringing lower costs and greater efficiency to capital markets by leveraging DLT.
“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.”
Globacap says its platform brings securities issuance and administration into the digital world, while still complying with existing regulations. Of note, Globacap is currently raising £3 million in growth capital.
MERJ also stated that is in discussions with several unnamed companies seeking to list digital securities.
MERJ explains that it was 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.
“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 Tuohy. “We are creating processes that ultimately will democratize access to global capital markets for companies and investors.”
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