Several national stock exchange operators, notably SIX Swiss Exchange (Switzerland) and the Gibraltar Stock Exchange (Gibraltar) have initiated efforts to list security tokens on their respective platforms.
These new forms of digital assets — security tokens — are widely heralded as the future of financial securities given the numerous benefits that it offers over the traditional methods of issuance.
However, the first national stock exchange to list and trade security tokens will likely be an unsuspected region — Seychelles — the African country with a population of fewer than 100,000 people.
MERJ Exchange Limited, the operator of the country’s only licensed securities exchange, confirmed the development to Bloomberg this week, with the security token listing expected to happen within the ‘next few days'.
MERJ CEO, Edmond Tuohy also spoke extensively regarding the existing gap between stock exchanges planning to list security tokens and bringing the actual product to traditional investors who are waiting for it.
He said that while at the moment there are a lot of people in the market who want [security tokens], there is no “well-regulated institution that does listing, trading, clearing, settlement, and registry that’s using distributed ledger technology.”
As noted earlier, if the Seychelles-based stock exchange can keep to its schedule, then the firm will almost certainly become the first national exchange list and trade security tokens ahead of their counterparts in Switzerland and Gibraltar.
While SIX Swiss Exchange recently announced the launch of its security token exchange platform, SIX Digital Exchange, the firm is yet to navigate past the relevant regulatory roadblocks to listing the offering.
The Gibraltar Stock Exchange on its part had received regulatory approval to list tokens but is yet to commence trading as per the Bloomberg update.
In the past, Stmarket.co also reported that the national stock exchange operator in Thailand plans to offer security token trading in the future.