INX Ltd, a crypto exchange company startup has plans to raise up to USD 130 million through an IPO in the first security token registered with the US securities and exchange commission the SEC. Unlike the ICO, initial coin offerings that were used to test the limits of securities law during the goner days of 2017, IPO is the real deal.
INX, which is situated in Gibraltar, filed a draft F-1, the SEC’s prospectus form for foreign issuers with the agency on Monday and will market the tokens to retail and institutional investors in the Initial Public Offering. It has to be noted that such a move by INX is a major milestone since its inception to date, as token sales have usually gone unregistered. Some issuers confined their marketing to wealthy investors so they would be exempted from the registration requirements and filed notices will the security exchanges commission. Most did not even have to tell the regulators what they were undertaking, and over the last year, the agency has brought a number of cases against ICO teams for illegally selling unregistered Securities.
Furthermore, INX sale will also be one of the few full-fledged IPOs in the blockchain industry and almost certainly the largest. Last year mining subscription company Argo Mining managed to raise USD 32.5 million through an initial public offering on the London Stock Exchange.
The target base for INX is largely institutional investors, even though like the INX token itself, crypto trading on the exchange will be available to the general public provided they go through anti-money laundering and know-your-customer screening, which are all basic regulations that are being adopted in the crypto industry.
“when fully operational, we expect to offer professional traders and institutional investors trading platforms with the established practices prevalent in other regulated financial services markets such as customary trading, clearing and settlement procedures, regulatory, compliance, capital and liquidity reserves and operational transparency” the draft prospectus reads.
In this way, INX will be in competition with a number of institutionally focused regulated trading platforms launching this year although INX stands out in the growth of digital assets it will move to list.
“Our vision is to establish two trading platforms and a security token that provides regulatory clarity to the blockchain asset industry. We plan to attain this, in part, by differentiating between security and non-security blockchain asset classes, and providing trading opportunities for each class”, the prospectus reads in part
It further continues to say, “in the future; we intend to establish a platform for the trading of derivatives such as futures options and swaps.”