London Stock Exchange Sells Tokenized Securities

Wilfred Michael 

Wilfred Michael

News reporter

15 April 2019,
18:17
London Stock Exchange Sells Tokenized Securities

For the first time, the London Stock Exchange (LSE) has listed on its platform tokenized securities from 20|30 a fintech startup. It arguably marks the first time that a Financial Conduct Authority (FCA) regulated stock exchange is offering users exposure to blockchain-based securities.

According to a report by the Telegraph, the tokenized securities were created on the Ethereum blockchain. It represented roughly a £3m worth of shares in 20|30’s equity and was settled on LSE’s Turquoise equity trading service.

However, the shares will not become tradable immediately. It would be locked up within one year after which it will be made available to institutional traders, not retail investors as most tokenized securities.

20|30’s chief executive Tomer Sofinzon said in the report,

“Tokenisation will unlock value in a whole range of assets, from existing shares to new issuance, bonds, property, IP, fine art and much more.”

Following the issue of its own tokenized securities on the Ethereum blockchain, 20|30 reportedly has plans to provide a platform other companies to issue blockchain-based securities.

Within the next few years, 20|30 said it would develop the Token Factory platform which will serve that purpose. The proposed platform which likely mirrors one recently launched by the Gibraltar Stock Exchange would charge companies less than what they would usually spend to obtain an IPO listing.

Meanwhile, the market for security tokens and tokenized securities, plus efforts to regulate the new segment of the crypto industry has continued to gain momentum in recent times.

As Stmarket.co has reported recently, regions such as Mauritius, Philippines, and Hong Kong has released STO regulations. U.S based startup, Blockstack also recently announced plan to use the SEC’s Reg A+ framework which allows securities issuance to raise $50 million via a token sale

 

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