The Gibraltar Blockchain Exchange (GBX), owned by the Gibraltar Stock Exchange (GSX), has announced that it will enable the trading of tokenised securities.
To be precise, GSX wants to offer services for the exchange of digital debt securities and digital funds. These are tokenised securities, such as corporate bonds, convertible bonds, asset-backed securities, derivatives, open-end or closed-end funds, based on Distributed Ledger Technology (DLT).
Thanks to DLTs, GSX wants to open up these markets in order to provide them with more liquidity, making illiquid assets more accessible and laying the foundations for democratising the capital markets, which have remained unchanged for decades.
Through smart contracts and the STACS network, digital debt securities and funds will be launched, which may also allow the distribution of payments, coupons or dividends.
The Gibraltar Stock Exchange (GSX) is a private stock exchange that was established in 2014 in Gibraltar, the first to have obtained all the necessary authorisations to operate legally on the British Overseas Territory.
These regulatory approvals granted by the Gibraltar Financial Services Commission (GFSC) allow issuers to use blockchain or another DLT as a means of recording assets and listing them on the exchange.
Nick Cowan, CEO of the GSX group, commented:
“This is a historic moment for GSX, we have worked incredibly hard to reach this point, and we are now at the precipice of a truly transformational period for the capital markets. We now have an unparalleled opportunity for the GSX to become a frontrunner in the emerging digital securities market. We’re pioneering meaningful change, for the betterment of the global financial industry, we have come so far already, and this is only just the beginning”.
The exchange of tokenised securities is still an undeveloped area, but in which much competition is expected in the near future. For GSX it could be a competitive advantage to be among the first, given that to date there are still very few stock exchanges that allow trading these investment securities.