The Gibraltar Stock Exchange (GSX) is now enabling companies to list blockchain-based securities on its GSX Global Market platform.
The stock exchange revealed the news on April 9, stating that its current regulatory permissions awarded by the Gibraltar Financial Services Commission (GFSC) include the use of blockchain or distributed ledger technology (DLT) by issuers as a form of recording of ownership.
Thus, the company can now enable listing of asset-backed and derivative securities, corporate and convertible bonds, as well as open-ended and closed-ended funds in a digital or tokenized form.
GSX CEO and founder of the GSX Group Nick Cowan stated:
“We aim to leverage blockchain to open up greater liquidity pools, making illiquid assets more accessible, and set the foundations to better democratise capital markets.”
The GSX also revealed that it has allowed memberships to companies from outside the EU, Liechtenstein, Iceland, and Norway (European Economic Area) and Switzerland, meaning licensed financial services companies from most jurisdictions may now send applications to join the GSX and bring their issuers to market.
Gibraltar’s financial regulator revealed its DLT regulatory framework in January 2018, mandating companies utilizing blockchain to “store or transmit value belonging to others” to apply for a license.
The Gibraltar Blockchain Exchange (GBX), blockchain subsidiary of Gibraltar Stock Exchange, has been awarded a license from GFSC in November 2018.
Although yesterday’s announcement only details the listing certain tokenized funds and digital debt securities, Cowan stated exchange-traded funds (ETF) are part of its future plans, adding:
“ETFs are products that the GSX Group is especially interested in given our position as one of the largest fund administrators in Gibraltar, meaning we can support future ETF structuring and issuance.”