Signed agreement will see testing of Bitcoin, Ether and Tokenized IPOs on the ECSE
Basseterre, St. Kitts, and Toronto, Canada, March 10, 2020 – The Eastern Caribbean Securities Exchange (ECSE) is proud to announce a Letter of Intent selecting technology partner Blockstation to pilot the trading of digital assets including Tokenized IPOs (also known as Security Token Offerings, or STOs), Bitcoin, and Ether in 2020.
Blockstation provides an end-to-end platform for the compliant tokenization, listing, trading, clearing, and settlement of digital assets for every participant in the stock exchange ecosystem including issuers, investors, broker-dealers, depositories, market makers, and regulators.
Talks between Blockstation and the ECSE began in late 2018, with positive steps taken towards an agreement following successful trials of the platform with the Jamaica Stock Exchange (JSE) - including the announcement of the first four issuers to conduct a Tokenized IPO later this year - and a planned pilot with the Barbados Stock Exchange (BSE).
“The ECSE is proud to take a leading role in increasing access to and participation in our securities market through digital assets,” says Trevor E. Blake, Managing Director of the ECSE. “This pilot follows the pilot being undertaken by the Eastern Caribbean Central Bank (ECCB) of a digital EC dollar (DXCD) that will be the world’s first central bank-backed digital currency, supporting the ECCB’s goal to remove financial frictions, promote financial stability, and expedite growth and development in the member countries of the Eastern Caribbean Currency Union (ECCU).”
The ECSE intends to leverage the Blockstation platform to provide:
100% insurance on investors’ digital assets
Prospectus+ Smart Listing Accelerator Portal (SLAP) for issuers to create and manage their disclosure documentation in preparation for a Tokenized IPO
Secure, streamlined KYC/AML processes to ensure trading only with trusted parties
Best-in-class design with a user-customized dashboard showing the bid/ask book, trading interface and market activity at a glance
Decentralized custodianship with multi-signature authorization in cold storage vaults
ChainWatch security tool for regulators to track the source and flow of assets in real time,
Hassle-free withdrawal and conversion of digital assets with end-of-day settlement
Liquidity from a central, continuous order book with multiple broker-dealers and market makers
The Blockstation platform also enables the compliant listing of digital assets such Tokenized IPOs (also known as Security Token Offerings, or STOs) from anywhere in the world. Further, it facilitates access to international investors by permitting the use of Bitcoin and Ether in addition to fiat currencies, enabling smaller investors to participate in exciting offerings due to the low cost of blockchain transactions.
The ECCU already has a regulatory framework in place to support investment and funding from international sources.
“It’s inspiring to see the vision of shared prosperity resonate so strongly in our conversations with the ECSE and financial regulators in the region,” says Matt Singh, VP of Sales at Blockstation. “We look forward to advancing the ECSE's goals of leveraging the blockchain to bring transparency, improved security and new economic opportunities to their citizens and global investors.”
To learn more about Tokenized IPOs, visit: www.blockstation.com/tokenize
About Eastern Caribbean Securities Exchange
The ECSE is a fully electronic regional exchange incorporated in the Federation of St Christopher and Nevis under the Companies Act of 1996 as a public limited liability company. It is licensed and regulated under the Securities Act of 2001.
The ECSE carries on business as a regional securities exchange and facilitates the buying and selling of financial products, including corporate and government securities for the member territories of the Eastern Caribbean Currency Union.
The ECSE has a wholly-owned subsidiary, the Eastern Caribbean Central Securities Depository Ltd. Its main activities include the post-trade clearing and settling of securities market transactions and also the electronic maintenance of records of securities on the behalf of securities issuers.
The registered office is situated at Bird Rock, Basseterre, and St. Kitts.
Blockstation, a leading Canadian FinTech company founded in 2014, provides one of the first digital asset trading solutions for stock exchanges. It provides the end-to-end and compliant listing, trading, clearing and settlement of digital assets and security tokens for the entire ecosystem of broker-dealers, investors, issuers, depositories and regulators. Blockstation enables stock exchanges to quickly meet investor demand for digital assets and attract new listing and trading revenues. The solution fits existing IT infrastructure, trading processes, risk management and regulatory frameworks. www.blockstation.com
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