Seychelles stock exchange MERJ has become the world’s first national stock exchange to launch a public offering of a blockchain-based security for trading. MERJ is listing the security token to represent equity in its own company under the ticker symbol “MERJ-S” and will also offer the opportunity for other companies to list their security token on its regulated securities exchange. The exchange is licensed by the country’s Financial Services Authority as a clearing agency, securities depository (CSD), and securities exchange. The company says on its website that “MERJ will be the world’s first end to end regulated exchange, clearing agency and registry using blockchain to create a truly efficient global capital market experience for issuers and investors.”
According to Coindesk, MERJ will be using the Ethereum blockchain to record and maintain the shareholder ledger. By moving towards a blockchain-based platform, the company believes it will significantly reduce costs and streamline operational processes including compliance, shareholder ledgers, issuance, dividend payments, and voting.
“The technology creates an access point to the capital markets, which is particularly suited to the ‘mobile first’ ecosystems in many emerging markets,” said MERJ CEO, Edmond Tuohy, said in a statement to Coindesk. “We’ve spent three years working with our regulators to build a robust and compliant framework for issuers wanting to leverage the benefits of distributed ledger technology within a publicly listed environment.”
The ticker symbol MERJ-S can be seen on the company’s listings page and currently has a market cap of over US$21 million and trading at $2.42/share. As a regulated exchange, clearinghouse and CSD, MERJ feels it is strategically positioned to execute on the number of benefits of tokenization.