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.
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