INX has thrown out its first security token issued by a public company, the tokenization platform announced on April 3.
Public company shares on the blockchain?
Witness the future in action!
Proud to team up with @greenbriarcorp to tokenize its GEBRF traditional shares in an industry-first! https://t.co/sS4p5MIwa3— INX (@INX_Group) April 3, 2023
The new token represents shares of Greenbriar Capital, which is listed over-the-counter (OTC) in the US under the symbol GEBRF and on the Toronto Stock Exchange as GRB.
Greenbriar is a developer of affordable housing and green energy products. It is the first time that its shares have been traded on a public blockchain network.
According to the platform’s help files, INX security tokens exist on the Ethereum network and are adjust to the ERC-1404 Simple Restricted Token standard. When a user purchases security tokens through INX, they must include their Ethereum address in a White list signing a message through Metamask. The smart contract keeps track of which addresses have been whitelisted, and if a user tries to transfer tokens to a non-whitelisted address, the transfer fails.
INX claims that it does not hold any token securities on behalf of users, as these tokens are only stored in the user’s wallet.
To manage fees for Ethereum gas, the platform currently charges a $25 fee for each security token purchased, according to the app’s UI.
INX has previously included two other security tokens on its platform: INX, which represents shares of the platform company itself and MSCO, which represents shares of the fine art studio MS Token. However, these previous tokens represented private companies, while GEBRF is the first public company with complete financial information to join the INX platform, according to the announcement.
INX also offers traditional cryptocurrencies such as Bitcoin (BTC), Ether (ETH), Zcash (ZEC) and others.
Cryptocurrency developers have often tried to avoid having their tokens classified as securities, as this designation requires the creators to provide extensive information to the Securities and Exchange Commission and other government bodies. However, some experts argue that the tokenization of securities will bring benefits to the traditional financial industry.
In September, KKR’s Health Care Strategic Growth Fund II (HCSG II) got tokenized In the net Avalanche (AVAX) with the help of Securitize Capital. And in October, the Tel Aviv Stock Exchange announced that I was testing a program purchase and sale of tokenized bonds. Ralf Kubli, from the Casper Association, has argued that tokenized mortgage-backed securities will be essential to prevent future financial crises.
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