Gibraltar could play host to the world’s first hybrid stock exchange which allows traders to buy securities using crypto.
Blockchain start up Valereum today announced plans to accelerate its purchase the Gibraltar Stock Exchange (GSX), streamlining the structure of a deal first announced in October which will give the start up a 90 per cent stake in the exchange. If the offer wins approval from regulators Valereum will establish an integrated fiat and digital exchange where securities can be purchased using Bitcoin, Ethereum, Cardano, Dogecoin and the stablecoin Tether.
“We welcome this enhancement of the transaction with Valereum and are excited by what lies ahead for the Exchange,” said Simon Brickles, Chairman of the Global Stock Exchange Group.
In December, crypto friendly Gibraltar’s government announced plans to integrate blockchain technology into its legacy systems in order to improve the delivery of its public services.
Richard Poulden, the chairman of Valereum commented: “this simplifying of the acquisition structure is important for all parties and will lead to faster completion of the transaction. We look forward to working with the GFSC to realise this vision for Gibraltar.”
Valereum, which made an operating loss of £500k in the first six months of 2021, said it has already purchased a 40 per cent stake in the exchange and plans to exercise an option to acquire a further 10 per cent holding in the GSX. Once the change of control has been approved a further 40 per cent will be transferred to Valereum giving a total holding in the GSX of 90 per cent.
While Valereum did not disclose the size of the deal under the stock exchange’s current owners, the Global Stock Exchange group, the market has admitted over 2,500 securities, totalling almost $5bn in value.
Read more: Nearly 40 places apply for UK city status with entries from Gibraltar and the Cayman Islands