MERJ, the national stock exchange of Seychelles, has kicked off its initial public offering (IPO) of tokenized equity. The digital asset is the first security token offering (STO) of a regulated stock exchange anywhere.
The IPO values the 8-year old exchange at USD $25 million. Interested investors may access the STO via the exchanges own website. US investors may transact through broker-dealer Jumpstart and US custodian Prime Trust. In the UK, London based blockchain platform Globacap will handle share purchase, according to a company release.
MERJ is issuing 1,652,893 new shares at a price of $2.42 per share. The gross amount of capital raised is approximately US $ 4 million. The digital security will be listed on MERJ and denominated in US dollars. The token will utilize the Ethereum public blockchain.
“These novel financial instruments are here to reshape the financial industry for years to come,” commented Edmond Tuohy, CEO of MERJ Exchange. “MERJ provides the regulatory framework necessary for investors globally to access these markets in a safe and compliant manner.”
MERJ says the benefits of tokenization is the ability to provide a regulated infrastructure to investors globally. The exchange envisions other assets benefiting from tokenization such as real estate, art, music and more non-traditional assets which may be securitized.
MERJ states that its “direct access model” can enable investors to participate in offerings while removing intrinsic friction. MERJ seeks to have a “significant democratizing effect on global capital markets.”
MERJ notes that exchange has been developed as a result of the IMF and World Bank working with the islands’ government to build a financial services sector while coordinating with agencies like the OECD and FATF to ensure compliance with the highest international standards. MERJ is an affiliate member of the World Federation of Exchanges and is licensed by the Seychelles Financial Services Authority.
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