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 exchange added in the announcement that it has opened membership to firms from outside the EU, including European Economic Area member states such as Iceland, Liechtenstein, and Norway, and European Free Trade Association member Switzerland.
The news means that licensed financial services firms in those regions will now be able to join the GSX, bringing financial products 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.
Gibraltar image via Shutterstock