Ethereum-based stock exchange SprinkleXchange is purportedly listing its first company in June.
Alexander Wallin, CEO of Sprinkle Group, said through a Bloomberg interview on May 17, “We have the luxury of being first with this, but we’re aware that it will become a crowded market.”
Running under a regulatory sandbox developed by the nation’s central bank, the Bahrain-based platform utilizes a decentralized settlement and clearing system that employs automation in order to decrease cost and time. The Dutch auction method will govern the prices and SprinkleXchange will take a 1 percent fee.
Wallin said that the cost of listing is comparable to a Swedish stock exchange, but “you get global access and we can show that you also get better liquidity.”
SprinkleXchange’s goal is to lure companies with a market capitalization of $20-$200 million. It aims to list 35 companies over the first year and as many as 1,000 for the next few years. Aside from listed stocks, the company will provide trading digital currencies and also considers adding exchange-traded funds in the future.
Several traditional stock exchanges are presently moving to incorporate blockchain technology in their platforms. Swiss stock exchange SIX, for example, is anticipated to launch a blockchain platform for faster trading later this year. Meanwhile, the Gibraltar Stock Exchange recently began enabling the listing of tokenized securities.
The Australian Securities Exchange is revamping its old-aged CHESS settlement platform utilizing blockchain technology provided by Digital Asset. Other stock exchanges, such as in Thailand, Jamaica, and Spain, have also revealed initiatives around blockchain and cryptocurrencies.