MERJ Exchange partners with Globacap to offer tokenized securities

Seychelles based MERJ Exchange is positioning itself to become a global market leader in tokenized securities trading.

First national stock exchange to list tokenized securities

On August 7, MERJ became the first regulated, national securities exchange to list a security token when it listed a native MERJ equity token on its exchange. This pioneering move puts Seychelles ahead of fintech hubs such as Zurich and Gibraltar who were also in the race to launch the first regulated stock exchange-powered token offering, according to a report by Bloomberg.

MERJ’s security token carries the ticket MERJ-S and currently trades at $2.42. The equity token has a market capitalization of $21,015,780.94, is denominated in US dollars and was launched on the Ethereum blockchain.

“MERJ has fully leveraged its end-to-end ecosystem to deliver the world’s first publicly listed securities token. We are combining the best of the old world and the new to provide a key piece of missing infrastructure for the growth of digital assets,” said the exchange.

MERJ partners with Globacap to cater to European investors

This month, the financial services company plans to offer 16 percent of its share capital in the form of equity tokens in a tokenized IPO, according to a press release. To offer its tokens to investors in Europe, MERJ has partnered with Globacap to aid with the distribution.

London-based Globacap, a financial services company focused on asset tokenization, was the first regulated company to issue equity tokens in the UK. MERJ Exchange’s CEO Edmond Tuohy believes that Globacap’s experience in this field will help MERJ to reach more investors for its security token offering.

"We will be the first entity anywhere in the world to hold an initial public offering of security tokens. For this ground-breaking event, it is essential to have a partner on board with the right technology, systems, and approach to grasp the significance of this milestone. Globacap are among the leaders who are executing in this space and that resonates well with us," Tuohy stated.

Beyond the issuance of its security token and the listing of further tokenized securities, MERJ’s mission is to become a next-generation securities exchange that runs on the blockchain.

MERJ plans to use blockchain technology to streamline all operational processes involved in operating a securities exchange – from issuance and shareholder register to distribution and voting – to reduce costs for both issuer and investors.

"Globacap and MERJ share a mission to bring the efficiency and cost benefits of distributed ledger technology to the regulated financial markets arena. MERJ has demonstrated unquestionable leadership and its IPO will be a landmark event in bridging regulated financial markets and the world of digital assets," Globacap CEO Myles Milston added.

MERJ could become an exciting use case for other international exchanges who are considering the “blockchainization” of its operations.