National Exchange of Seychelles MERJ goes live with tokenized IPO

MERJ Exchange

Edmond Tuohy, CEO of MERJ Exchange

MERJ Exchange, the national stock exchange of the Republic of Seychelles, on Tuesday announced the initial public offering (IPO) of its tokenized shares.

With the announcement, MERJ has reportedly become the first entity to offer tokenized equity. The offering has valued the 8-year old exchange at $25 million, said a statement.

The IPO is open to investors from across the globe through the exchange’s portal, as well as through collaborations with US broker-dealer Jumpstart, US custodian Prime Trust and London based blockchain provider Globacap.

MERJ is issuing about 1.7 million new shares at a price of $2.42 per share, thereby raising $4 million in expansion capital. The tokenized equity will be denominated in US dollars and will use ethereum blockchain system, the statement added.

“These novel financial instruments are here to reshape the financial industry for years to come. MERJ provides the regulatory framework necessary for investors globally to access these markets in a safe and compliant manner,” Edmond Tuohy, CEO of MERJ Exchange said.

Tokenization is the process of converting a unit of asset ownership into a digital token on a blockchain. It can be applied to financial instruments such as equities and bonds, tangible assets, and even copyrights attached to intellectual property.

MERJ is a global platform with issuers from North America, Europe, Asia, Australia, and Africa. It is working on a direct-access model that enables investors to access the exchange directly via web or mobile app, as well as through traditional broker and member channels. By combining the model with the distributed ledger technology, MERJ is expected to have a democratizing effect on global capital markets.

MERJ Exchange Limited, formerly Trop-X Limited, was incorporated in the Republic of Seychelles in 2011. The exchange went live in 2013 and upgraded from a correspondent member to an affiliate member of the World Federation of Exchanges in 2016.

Recently, IBS Intelligence had reported that MERJ Exchange partnered with FCA-regulated automated capital markets platform, Globacap to issue tokenized securities in the UK and across Europe.

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