MERJ, a recently launched security token exchange, today announced a partnership with blockchain company Globacap, a UK regulated platform to issue tokenized equity.
Earlier this month, MERJ became the first stock exchange globally to list equity in security token form. For the forthcoming initial public offering of these tokens, MERJ will partner with London-based Globacap to distribute the securities in the UK and Europe.
The alliance brings together two companies intent on introducing international governance standards and safety nets to the world of digital assets through fully compliant end-to-end infrastructure. In 2018, Globacap became the first company to issue an equity-security token under the regulatory supervision of the UK’s Financial Conduct Authority.
“Globacap and MERJ share a sense of mission to bring the efficiency and cost benefits of distributed ledger technology to the regulated financial markets arena,” said Globacap Founder and CEO Myles Milston. “MERJ has demonstrated unquestionable leadership and its IPO will be a landmark event in bridging regulated financial markets and the world of digital assets. We couldn’t be more excited to be a part of this journey.”
With 8.7 million of its own shares listed on the Seychelles exchange in tokenized form, MERJ plans to offer 16% of the company’s share capital in its IPO, set for next month. Globacap, which uses distributed ledger technology for issuance and administration of tokenized securities, is a “natural fit” as both companies are applying blockchain technology to highly regulated financial markets.
“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 for MERJ to have a partner on board with the right technology, systems and approach to grasp the significance of this milestone for financial markets. Globacap is among the leaders who are really executing in this space and that resonates well with us.”
– Edmond Tuohy, CEO of MERJ Exchange
MERJ is in active discussions with several companies planning to list their own digital securities on the Seychelles exchange. It is also in talks with global tech companies about long-term partnerships in areas including tokenization, custody and key management.
The licenses MERJ possesses extend to operating the entire pre- and post-trade infrastructure, which includes clearing, settlement, registry, and depository services. This confers key advantages when it comes to integrating and implementing the enhancements offered by digitization.
By applying distributed ledger technology to streamline processes, MERJ expects to help reduce costs both for issuers and investors. The direct access enabled by MERJ’s infrastructure limits the need for brokers or banks, creating a direct access point for the “mobile-first” ecosystems of many emerging markets.