Seychelles With First Blockchain-Based Equity Token
MERJ Exchange, the only licensed stock exchange in Seychelles, will be listing its own security token within the coming weeks making it the first blockchain-based equity token. MERJ is a member of International Organization of Securities Commissions (IOSCO) and adheres to Financial Action Task Force (FAFTA) guidelines.
The exchange is a global financial exchange for equities, debt, and derivatives. MERJ is in the process of enabling a marketplace for security tokens, digital assets, and hybrids this month.
According to an interview with Bloomberg, Chief Executive Edmond Tuohy stated, “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.”
MERJ explains that it is using blockchain for two main use cases. First, the tech will be utilized as a global asset ledger to simplify security management and interoperability. Second, blockchain tech will be used as a settlement system.
The security token offering is open to US residents who are accredited investors at a $10,000 minimum investment. MERJ is working with Fund America and Prime Trust to process all applications, AML/KYC, perform accredited investor checks and collect funds via escrow. MERJ has been running the exchange in Seychelles since 2013.