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In a recent interview, Sprinkle Group CEO Alexander Wallin explained recent developments of SprinkleXchange, which is set to list its first company in June. With the rise of tokenized securities, a growing number of traditional stock exchanges are integrating blockchain technology with the traditional stock exchange.
Ethereum-Powered ‘SprinkleXchange’ Explained
SprinkleXchange is a stock exchange built on the Ethereum blockchain. It expects to list 35 companies over the next 12 months, with the first listing scheduled for June.
Sprinkle Group CEO Alexander Wallin recently told Bloomberg,
“We have the luxury of being first with this, but we’re aware that it will become a crowded market. It’s like moving from VHS to streaming; Netflix did it nicely and was first, but now there are lots of streaming sites.”
The Bahrain-based platform has received regulatory approval from its central bank for the first 10 listings through a new regulatory sandbox. It will proceed to list the additional companies once the central bank gives the green light, which is expected to happen later this year, said Wallin.
The Ethereum blockchain can facilitate numerous benefits when compared to a traditional stock exchange, which “takes longer and costs more” according to Wallin. SprinkleXchange is said to remove clearing and settlement costs, automate central clearing systems, repositories, stock certificates, dividends, and voting.
The new exchange will target companies with a market cap ranging between $20 million — $200 million. Wallin also said it has received interest from a number of sectors, to include real estate, forest, and biotech firms.
Users will be able to trade listed companies as well as cryptocurrencies 24/7. According to the CEO, the platform is also currently looking at listing exchange-traded funds.
The Increasing Integration of Blockchain and Stock Exchanges
Stock exchanges around the globe are adding blockchain technology and tokenized assets to their repertoire.
Leading Swiss stock exchange SIX recently announced the launch of a digital offering service as well as plans to tokenize existing securities by 2021.
The Gibraltar Stock Exchange (GSX) is now listing digital debt securities and digital funds powered by the blockchain.
The London Stock Exchange (LSE) recently completed its first test of security token issuance.
The US state of Maryland just passed a bill into law which allows blockchain technology to record the issuance, transfer, and management of stocks.
Security tokens are on the rise, and they’ve clearly caught the attention of traditional stock exchanges.
What do you think of the Ethereum-powered SprinkleXchange? Will Ethereum become the go-to blockchain for stock issuance and management? We want to know what you think in the comments section below.
Image courtesy of BBJ.