The first blockchain-based, tokenized initial public offering (IPO) was launched on Sept. 10 on a national stock exchange, marking a milestone for traders looking to invest in security tokens.
Security Token IPO Launches
MERJ, the official securities exchange of the Republic of Seychelles in East Africa, became the first national exchange to list security tokens earlier in the year and will add to that distinction by issuing the first tokenized IPO.
The exchange has issued 1,652,893 tokenized shares at a price of $2.42, in hopes of raising $4 million to continue the expansion of the platform. MERJ will also make tokens available to U.S.-based investors through broker-dealer Jumpstart and custodial service Prime Trust, allowing for Americans to legally invest in a security token.
Edmond Tuohy, CEO of MERJ, told CoinDesk,
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.
Shares in the IPO will be issued as security tokens utilizing ethereum’s public blockchain.
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