security tokens

The first SEC approved security tokens IPO has hit the market. On September 14, 2020, INX Limited announced that it had managed to achieve its $7.5 million minimum fundraising goal in its ongoing IPO. The company began accepting ETH, BTC, and USDC on September 14, 2020, at 10 AM EDT as payment for the tokens. In the first three days, over 3000 approved investors and private investors had registered to participate in the token offering.  

First SEC – Approved Security Tokens IPO

The INX IPO is the first-ever digital security token IPO to be registered with the SEC. It has a fundraising goal of $17 million from institutional and retail investors. The company plans to use the proceeds from the INX tokens sale to launch a regulated exchange for digital assets. On the platform, traders will be able to trade security tokens, crypto, and crypto derivatives. Some of the funds will also be used to establish a cash reserve fund as well as the development / launch of INX Trading Solutions. 

Details of the IPO

The offering price is set at $0.90 per INX. A minimum investment of $1000 is needed to participate. The exchange rate for ETH/USD, BTC/USD, and USDC/USD will be determined according to the guidelines of the final prospectus.

On August 20, 2020, the SEC released a statement regarding the IPO. It declared that the INX was effective. The declaration by the SEC marked the first time that a digital token sale had been approved. Details of the IPO can be found in a prospectus on the SEC site. It details all the terms under which the offering has been filed.

To participate in the IPO, one has to comply with the rules set forth by the SEC and be approved to participate in the IPO. However, it is still a momentous event in the digital securities industry. Only those that live in the following states can take part in the offering:

  • California
  • Colorado
  • Connecticut
  • Georgia
  • Hawaii
  • Illinois
  • Louisiana
  • Michigan
  • Minnesota
  • New York
  • Texas
  • Washington
  • Wisconsin
  • Wyoming

For those residing in California, Texas, and Washington, they have to adhere to the rules and conditions outlined in the prospectus if they wish to participate in the IPO.

What is the INX Mission?

INX has a mission of creating a regulated trading platform for digital securities and crypto. It will combine expertise in the financial markets and a unique approach to fintech. A team of professionals from various fields created the company. They come from diverse fields such as finance, business, and blockchain technology. These experts are united by the vision of redefining capital markets globally using blockchain technology and new approaches to regulation.

Future of Digital Securities 

The capital markets around the world could benefit a great deal from digital securities. It would help to ensure IPOs were faster, safer, and transparent. Besides that, it could help to lower the cost of issuing IPOs.

In general, digitally-issued securities have many advantages over existing platforms, due to the security offered by blockchain technology. In the future, there is a chance that securities-issuance using digital tokens could become the norm as people begin to understand the benefits of blockchain technology.

Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. The information has been obtained from sources we believe to be reliable; however no guarantee is made or implied with respect to its accuracy, timeliness, or completeness. Authors may own the crypto currency they discuss. The information and content are subject to change without notice. Visionary Financial and its affiliates do not provide investment, tax, legal or accounting advice. This material has been prepared for informational purposes only and is the opinion of the author, and is not intended to provide, and should not be relied on for, investment, tax, legal, accounting advice. You should consult your own investment, tax, legal and accounting advisors before engaging in any transaction. All content published by Visionary Financial is not an endorsement whatsoever. Visionary Financial was not compensated to submit this article Please also visit our Privacy policy; disclaimer; and terms and conditions page for further information.

You May Also Like

CEO Of World’s 1st Regulated Blockchain Comments On Fed’s Interest In A Blockchain Based Dollar

Last week, Fed Chairman Jerome Powell spoke with the House Financial Services…

Circle Teams Up With BCB Group To Satisfy Growing Institutional Demand For USDC Payments, Clearance And Custody

BCB Group, a financial services group working with some of the world’s…
BSOV Token

The BSOV Community – Spreading Non-Violence And Long Term Growth

For the past few weeks we have been looking closely at BSOV,…

Global Crypto Markets Lose $10 Billion In Value, Stocks Have Worst Week Since March

Global crypto markets lost $10 billion in value last week as total…
Sheesha Finance And Mercor Finance Partner On Defi Data Analytics

Sheesha Finance And Mercor Finance Partner On Defi Data Analytics

Sheesha Finance, a mutual fund in the DeFi space, recently announced that…

“I personally don’t believe Libra will succeed,” Says China’s Former Congressional Official

The ex-official of the congressional committee of China recently trolled Facebook’s proposed…

Wirex Launches TV Brand Campaign – Seamlessly Buy, Hold, And Exchange Crypto Into Fiat

Wirex, a London based digital payments firm, has recently announced the launch…
Unlocking Opportunities in VMware Blockchain Jobs

Unlocking Opportunities in VMware Blockchain Jobs

Are you intrigued by the convergence of cutting-edge technology and business solutions?…

Bitcoin vs Gold: In Depth Comparison Between BTC and GLD and Why BTC Is Not Digital Gold Yet

Bitcoin, an unusual innovation in the history of the exchange, has recently…
bank of thailand

Bank of Thailand Launches Bond Issuance Platform On IBM Blockchain

Bank of Thailand has just announced the rollout of the world’s first…