Today MERJ Exchange announced the launch of what is said to be the first IPO on distributed ledger technology in market history.
Shares tokenized on the public Ethereum blockchain are available to investors worldwide via the MERJ platform — the licensed securities exchange in the Republic of Seychelles, broker-dealer Jumpstart, crypto-custodian Prime Trust and blockchain fundraising platform Globacap. According to Yahoo Finance, MERJ Exchange has chosen to use Ethereum because at this time “it is the best-supported protocol for these purposes.”
According to the prospectus, the intended date for the closing of the IPO is the 8th of November. The Company is issuing 1,652,893 new ordinary shares at a price of $2.42 per share, raising $4 million of expansion capital. As the prospectus states, “the raised capital will be utilized to fund expansion.”
CEO of MERJ Exchange Edmond Tuohy explained that the combination of end-to-end exchange and post-trade infrastructure, including clearing, settlement, registry and depository services managed on one platform, and in close collaboration with the government, has helped the project implement blockchain and get approval from regulators.
“So for us, it is a vertically integrated exchange. What that means is that we can adopt something like distributed ledger technology into our integrated process a lot easier than other exchanges can.”