Seychelles’ national securities exchange, MERJ Exchange, is all set to win the race and list the world’s first regulated security token on its national stock market in next few days. By doing so, it will beat its leading competitors including the Swiss exchange company SIX and the Gibraltar Stock Exchange, which are very close to introducing the securities.
The Seychelles Ecosystem
Seychelles just a few years back has been flagged for the lack of transparency of its financial sector with the OECD in 2013 categorizing it as non-compliant in terms of tax transparency. Since then the government has taken several steps and implemented a range of regulations to strengthen the sector.
MERJ is aiming to use Ethereum and believes that the technology behind the cryptocurrency is much better suited to tokenized securities than Bitcoin. The initial listing will be very soon followed by a second tokenized offering within days. Notably, there could be as many as 30 on the exchange by year-end.
“There are a lot of people in the market who want this but there is a big gap at the moment: there is no, at least on the exchange side, well-regulated institution that does listing, trading, clearing, settlement and registry that’s using distributed ledger technology,” said Chief Executive Edmond Tuohy, whose company has run the exchange on the Indian Ocean island since 2013. “We are taking the advantage in being a first mover.”
- The Gibraltar Stock Exchange Group announced a joint venture with two Asian firms – Chong Sing Fintech Holdings Limited, a company listed on the Hong Kong stock exchange, and Prime Fintech, a blockchain-oriented firm.
- Smart Valor, one of the largest blockchain fintech companies in the Swiss Crypto Valley has recently secured a $3.25 million round of investment and visions to become leading security token exchange.