Gibraltar Stock Exchange to accept crypto as part of new ownership
Valereum’s plan is to allow fiat debt and equity instruments listed on the exchange to be bought with cryptocurrencies passing full AML requirements.
Valereum Blockchain has signed an option to purchase 80% of the Gibraltar Stock Exchange, leaving the remaining 20% with the current owner (Global Stock Exchange Group).
The exercise of the Option and the acquisition of 80% of the GSX are subject to approval by Gibraltar’s financial watchdog, GFSC.
If the deal goes through, Valereum will nominate directors to the board of the GSX, subject to regulatory approval. Valereum has also an option on 20% of the Global Stock Exchange Group.
Valereum is a Gibraltar-based blockchain technology group that plans to own GSX in order to establish the exchange the world’s first fully regulated, integrated fiat and digital exchange.
GSX is set to enable fiat debt and equity instruments to be bought with cryptocurrencies passing full AML requirements. The operator will accept all major cryptocurrencies including Bitcoin, Dogecoin, Cardano, Ethereum, and Tether.
As a regulated bridge that links fiat and crypto markets, GSX will provide listed instruments with access to a regulated pool of crypto capital that the firm claims is not available anywhere else.
Cryptocurrency holders will have the ability to have a direct, verifiable holding in fiat securities, while using exchange technology from established providers and updated with full front-to-back trading and clearing functionality.
Richard Poulden, Chairman of Valereum, said: “This deal represents the next stage in the evolution of digital assets becoming globally accepted and tradeable.
“It brings crypto closer to the mainstream and opens it up to be used in transactions with other asset classes. Just as The Rock of Gibraltar has been a physical port for centuries, GSX will encourage the next generation of digital assets to see Gibraltar as a virtual node in digital trade.”
James Levy, CBE, QC, Senior Partner of Hassans International Law Firm in Gibraltar, said: “Hassans is very proud to be acting for Valereum in connection with this very exciting development for Gibraltar as it introduces multiple benefits and puts our jurisdiction at the forefront of the digital world. The new exchange expands the territory as a financial centre giving it a global footprint and will create an enhanced financial services industry in Gibraltar.”
Nick Cowan, CEO of both the GSX and the GSX Group, said: “We have grown GSX into an attractive destination for high grade issuers and have to date admitted over 2,500 securities totalling almost US$5 billion in value. We welcome Valereum’s option to acquire an 80% stake in the GSX and we look forward to contributing towards Valereum’s goals.”
GSX obtained a DLT license from the Gibraltar regulator back in 2018.