INX Closes Openfinance Acquisition

The deal allows users to trade security tokens and cryptocurrencies side by side on the exchange.

AccessTimeIconJun 8, 2021 at 8:05 p.m. UTC
Updated May 9, 2023 at 3:20 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

INX Limited, a cryptocurrency exchange that went public on Ethereum last year, has completed the deal it needed to launch its digital securities trading platform.

On Tuesday, the company said it had received approval from the Financial Industry Regulatory Authority to close its acquisition of U.S. broker-dealer and alternative trading system (ATS) Openfinance Securities. The deal was first announced in October.

  • What Challenges Do Appchains Solve?
    00:59
    What Challenges Do Appchains Solve?
  • Appchain Protocol Tanssi Raises $6M
    18:57
    Appchain Protocol Tanssi Raises $6M
  • Breaking Down Internet Computer's 40% Rally
    00:59
    Breaking Down Internet Computer's 40% Rally
  • HSBC Brings Tokenized Gold to Hong Kong; Munchables Exploited for $62M
    02:14
    HSBC Brings Tokenized Gold to Hong Kong; Munchables Exploited for $62M
  • The purchase of Openfinance means INX can offer investors a digital securities trading platform in addition to a crypto exchange.

    “We’ve got security tokens and crypto trading side by side,” Douglas Borthwick, chief marketing officer and head of business development at INX, said in an interview. “Coinbase doesn’t do that.”

    The digital securities market offers traditional investors a way to trade tokenized equity 24/7 in true crypto fashion, Borthwick added. The closest competitor to INX would be security trading platform tZERO, which also has a U.S.-regulated ATS and is reportedly looking for a buyer. 

    INX’s platform is available in 75 countries, and its native token is held by 7,200 investors. Token holders will receive 40% of distributions from the company with no voting rights, while equity holders will receive 60% of distributions with voting rights. 

    The distribution means that investors can come to INX as a place to trade tokenized equities with thousands of other investors who are ready to trade, Borthwick said. 

    "If you think about GameStop and Reddit, the power of having a community can change things,” he said. “We are harnessing a huge community of folks that are going to be very powerful in deciding on our future." 

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.