Seychelles Stock Exchange (MERJ) was the first such institution to list tokenized securities for trading.
MERJ, licensed by the Financial Services Authority of the country as a securities exchange, clearing agency and securities depository (CSD), issued a token share to represent its own assets. Exchange CEO Edmond Tuohy said:
“MERJ made full use of its integrated ecosystem to issue the world's first officially listed stock token. We combine the best of the old world and the new to provide the missing infrastructure for digital asset growth. ”
The exchange said it was using the Ethereum blockchain to record ownership of shares, and stated that “it is currently the best supported protocol for this purpose.” On the listing listings page, the tokenized security has the MERJ-S ticker and is currently trading at $ 2.42 with a declared market capitalization of $ 21,015,781.
MERJ also plans to reduce costs for investors and issuers, using blockchain to optimize a number of processes in the securities markets, including issuing, maintaining shareholders registers, complying with laws, distributing shares and voting.
“This technology creates an access point to capital markets, which is especially suitable for ecosystems that actively use mobile devices in many emerging markets,” the report said.
MERJ claims that, having a license from the securities exchange, clearing agency and securities depository, it has every opportunity to “take advantage of the many benefits of tokenization”.
“Regardless of whether they issue tokenized or traditional shares, companies are not going to work in a jurisdiction that does not meet high international standards, as this will attract more attention from global regulators,” Tuohi said.
“We spent three years working with our regulators to create a reliable and compatible structure for issuers wishing to take advantage of distributed ledger technology to work in the stock markets,” he added.
Asset tokenization is becoming increasingly popular and is increasingly gaining regulatory approval. Recently, the German regulator approved the sale of tokenized bonds for $ 280 million. In addition, this summer the US Securities and Exchange Commission (SEC) approved a public offer of Blockstack startup tokens in the amount of $ 28 million.
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