A digital securities exchange, Tokenise, has collaborated with post-trade service provider GMEX to launch a regulated digital exchange.
The partnership between Tokenise, which is licensed in Barbados, and the UK-based GMEX began in September 2019 with the aim of launching a regulated digital exchange.
There is a growing interest in digital securities, or security tokens, among institutional investors that see it as a more sustainable use of tokenised or digital assets than the trading of bitcoin and other cryptocurrencies.It is also seen as a way to provide more liquidity in traditionally illiquid markets such as real estate and private assets.
However, the growth of tokenisation has been held back somewhat by the lack of infrastructure, including the establishment of regulated digital stock exchanges.
According to the two firms, the new platform will address a gap in the market by supporting securities issuance, trading, surveillance, clearing, settlement and custody.
“We have created our solution in response to the absence of regulated options for the buying and selling of digital securities globally," said Mike Kessler, Tokenise chief executive and founder.
“As a regulated securities market we have integrated the best of technology, including cryptography, with a complete trading ecosystem to simplify access to new asset classes, for both issuers and investors. This, in turn, will increase the flow of funds and investment opportunities for market participants.”
Meanwhile GMEX chief executive Hirander Misra referred to the launch as a milestone to "facilitate mainstream investor access to digital assets".