MERJ Partners Globacap to Offer Tokenized Securities in the EU

(Bloomberg) -- MERJ Exchange Ltd., which completed the first-ever listing of a tokenized security on a national stock exchange this month, said it has partnered with Globacap Ltd. to distribute its equity in the European Union.

MERJ, which began trading its tokenized securities on the Seychelles Stock Exchange through a listing by introduction, said in a statement that it will sell 16% of its stock next month. Globacap, which is based in the U.K., uses distributed ledger technology for issuance and administration of tokenized securities.

“We will be the first entity anywhere in the world to hold an initial public offering of security tokens,” said Edmond Tuohy, chief executive officer of MERJ, which runs the Seychelles exchange.

Tokenized stocks are digital assets representing shares in a company. The use of blockchain technology, a decentralized ledger that underpins cryptocurrencies like Bitcoin and Ethereum, allows the easy transfer of these assets between buyers and sellers, potentially reducing costs. Because they are classified as securities, regulatory hurdles have so far hindered bourses from launching such products.

To contact the reporter on this story: Antony Sguazzin in Johannesburg at asguazzin@bloomberg.net

To contact the editors responsible for this story: John McCorry at jmccorry@bloomberg.net, Pauline Bax

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