The Gibraltar Stock Exchange (GSX) is now allowing financial firms to list blockchain-based securities on its GSX Global Market platform.
The exchange announced the news on Tuesday, saying that its existing regulatory permissions granted by the Gibraltar Financial Services Commission (GFSC) cover the use of blockchain or distributed ledger technology (DLT) by issuers as a means of recording ownership.
As a result, the firm can now allow 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 democratise capital markets.”
The GSX also announced that it has opened up membership to firms from outside the EU, Iceland, Liechtenstein, and Norway (European Economic Area) and Switzerland, meaning licensed financial services firms from most jurisdictions may now apply to join the GSX and bring their issuers to market.
Gibraltar’s financial regulator announced its DLT regulatory framework in January of last year, making it mandatory for firms using blockchain to “store or transmit value belonging to others” to apply for a license.
The Gibraltar Stock Exchange’s blockchain subsidiary, the Gibraltar Blockchain Exchange (GBX), received a license from the GFSC last November.
While today’s announcement only covers the listing of digital debt securities and certain tokenized funds, Cowan said exchange-traded funds (ETFs) are in the pipeline, 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.”
Gibraltar image via Shutterstock