2019 the year of security tokens? Seychelles Stock Exchange offers first security token

The MERJ Exchange is the national stock market of the Seychelles, they are planning to offer a regulated security token. And that is unique! This is the first stock exchange in the world to offer regulated, token-based securities.

This is just the beginning

According to MERJ Exhange, this is just the beginning. Although no timeline is shared on their website, it says that they want to quickly open a Digital Assets and Security Token market.

The stock exchange has been around since 2013 and from that moment on it was possible to trade in shares, debts and derivatives. The fair was then called Trop-X Seychelles Ltd. Currently, 31 securities are listed and there is a market capitalization of $ 325.9 million. MERJ Exhange is the only licensed stock exchange in the Seychelles.

“We are convinced that this technology will be one of the most important steps to democratize the global capital markets. Everyone must have access ”, says Edmond Tuohy, CEO of MERJ Exchange.

MERJ Exchange said the tokens will be traded alongside existing “traditional” shares.

What are security tokens?

To understand what a security token is, you need to know what a security is. We call this effects in Dutch. These are tradable rights that represent a financial value. Consider stocks, bonds and options. Securities are traded on a stock exchange and the price is subject to normal market forces, ie supply and demand.

The idea behind security tokens is that these effects are tokenized. Everything of value must be able to be converted into tradable tokens. The regulations concerning security tokens are also stricter than for normal tokens that you get for example at an ICO or can trade at a crypto exchange.

Carlos Dominguez of SPICE Venture Capital is certainly hopeful about security tokens:

“It is inevitable that security tokens will change the idea behind equity. Just as Bitcoin has the potential to transform currencies. Security tokens immediately give the owner an economic interest and ensure faster returns. Every type of property can be linked to a token, this can become a massive billions of markets. “

Want to know more about security tokens? Read all about it here: What are security tokens and What are security tokens and Security Token Offering (STO).