Yet another country is allowing the listing of blockchain-based securities to its stock exchange. Earlier this month, Jamaica’s principal stock exchange, the Jamaican Stock Exchange got into an agreement with Canadian fintech firm, Blockstation, to enable the live trading of digital assets and security tokens in a regulated secured environment.
Now, the Gibraltar Stock Exchange (GSX) is allowing financial firms to list blockchain-based securities on its GSX Global Market platform.
According to an announcement by the exchange, its existing regulatory permissions granted by the Gibraltar Financial Services Commission (GFSC) cover the use of blockchain by issuers as a means of recording ownership.
The firm will now allow the listing of corporate and convertible bonds, asset-backed and derivative securities, as well as open-ended and closed-ended funds in a digital or tokenized form.
Nick Cowan, GSX CEO and founder of the GSX Group, said:
“We aim to leverage blockchain to open up greater liquidity pools, making illiquid assets more accessible, and set the foundations to better democratize capital markets.”, as stated by Nick Cowan, founder and CEO of the GSX group.
Further, the exchange also announced that its membership will be open to firms outside the EU, including the European Economic Area member states like Iceland, Liechtenstein, Norway, and the European Free Trade Association member Switzerland.
Licensed financial services firms in those regions will now be able to join the GSX and bring financial products to the market.
The financial regulator of Gibraltar made an announcement in regards to its DLT regulatory framework in January 2018, which made it mandatory for blockchain-based firms to ‘store or transmit value belonging to others’ to apply for a license.
The Gibraltar Blockchain Exchange (GBX), the Gibraltar Stock Exchange’s blockchain subsidiary, received a license from the GFSC in November 2018.
This article was sourced from CoinDesk.