London Stock Exchange, founded in 1571 is one of the world’s oldest stock exchanges and second largest by volume operating in Europe (Euronext is first) has recently approved trading in tokenized equity shares of a fintech startup “20|30“, a decentralized network that builds innovative solutions on the blockchain.
Tokenization of 20|30
However, while several companies have issued blockchain tokens to represent bonds or equity, trading remains limited to newly-created digital markets. 20|30 represents the first security token issuance in one of the world’s most respected capital markets. Though, shares will not be immediately tradeable, after a year-long lockup, trading will become available for institutional traders, but not retail investors.
Equity in financial technology company 20|30 was sold in tokenized form, digital representations of shares similar to cryptocurrency technology. These shares then exist on a blockchain, an online ledger that creates a cryptographic record of transactions. Around £3m worth of shares in 2030 were issued in token form and settled in a test environment on the LSE’s Turquoise equity trading service. 20/30 is a Fintech that was part of the Financial Conduct Authority’s (FCA) Fintech Sandbox and thus well known by regulators. Globally, the FCA has become a recognized leader in supporting Fintech innovation.
20|30 is a venture studio building the future on blockchain. The firm is blockchain-agnostic and experiment-driven it is a decentralized network that builds innovative solutions on the blockchain, helps others with blockchain projects and ICO fund raising.
The firm’s goal is to change capital markets by tokenizing shares and building the exchanges that will trade tens of thousands of securities worldwide. Starting from London, the firm is building a network of licensed broker dealers and a trading platform that will let people around the world easily buy securities on their phones using their Pillar wallets.
At a Glance: Previously in February 2019, London based environmental startup ‘Almond’ announced to launch an FCA regulated Security Token Offering.