Tokenistic investment or technology of the future?

By Jonathan Jackson. Published at Sep 12, 2019, in Ctrl Alt Del

The Seychelles’ stock exchange has become the first entity in the world to hold an initial public offering of security tokens.

Most of us view the Seychelles as the idyllic paradise it looks to be - marked by coral reefs and beautiful nature reserves.

This region of of the Indian Ocean is on many peoples' bucket lists and was once the hub of global shipping trade. It is now becoming a magnet for savvy investors, not least because it is developing one of the most technologically advanced stock exchanges - MERJ, the national stock exchange of the Republic of Seychelles.

The Seychelles exchange was developed as a result of the IMF and World Bank working with the islands’ government to build a financial services sector while coordinating with agencies like the OECD and FATF to ensure compliance with the highest international standards.

An affiliate member of the World Federation of Exchanges, MERJ is licensed by the Seychelles Financial Services Authority, which is an associate member of IOSCO. The Seychelles is a member of the Commonwealth and the only country in Africa classified as high-income by the World Bank.

Just this week, MERJ, took a world first stance when it announced the initial public offering (IPO) of its tokenised shares, becoming the first entity in history to do so.

According to SWI, "tokenised stocks are digital assets representing shares in a company. The use of blockchain technology, a decentralised ledger that underpins cryptocurrencies like Bitcoin and Ethereum, allows the easy transfer of these assets between buyers and sellers, potentially reducing costs. Because they are classified as securities, regulatory hurdles have so far prevented bourses from launching such products".

Token value

The offering values the 8-year old exchange at US$25 million and is now open to investors from across the globe through the exchange’s own portal, as well as through collaborations with US broker-dealer Jumpstart, US custodian Prime Trust and London based blockchain provider Globacap.

MERJ is issuing 1,652,893 new shares at a price of $2.42 per share, raising US$4 million of expansion capital. The exchange’s tokenised security uses the ethereum public blockchain whilst also being listed on MERJ’s stock exchange and denominated in US dollars, providing investors a secure and familiar way to gain exposure to the growing digital asset industry.

Just last month, MERJ beat global competitors including big banks such as Zurich to become the first fully regulated stock exchange to list tokenised securities worldwide, bridging traditional financial markets with distributed ledger technology (DLT). The week's public offering marks a significant milestone for the emerging digital asset class.

“These novel financial instruments are here to reshape the financial industry for years to come,” said Edmond Tuohy, CEO of MERJ Exchange. “MERJ provides the regulatory framework necessary for investors globally to access these markets in a safe and compliant manner.”

Edmond Tuohy Used with permission of Bloomberg LP.

Touhy aso said: “There are a lot of people in the market who want this but there is a big gap at the moment: there is no, at least on the exchange side, well-regulated institution that does listing, trading, clearing, settlement and registry that’s using distributed ledger technology.”

What is tokenisation?

Tokenisation is the process of converting a unit of asset ownership into a digital token on a blockchain. It can be applied to financial instruments such as equities and bonds, tangible assets such as real estate, fine art or rare cars, and even copyrights attached to intellectual property, authorship, or music.

For ordinary investors, this provides access to opportunities that were previously hard to come by. One of the main barriers has been the lack of a regulated infrastructure on which tokenised assets could be traded.

MERJ provides that infrastructure to investors globally, with issuers from North America, Europe, Asia, Australia, and Africa.

More about MERJ

MERJ is pioneering a direct-access model that enables investors to access the exchange directly via web or mobile app, as well as institutional customers through more traditional broker and member channels. By combining this model with the far-reaching effects of distributed ledger technology, MERJ hopes to have a significant democratising effect on global capital markets.

MERJ EXCHANGE Limited, formerly Trop-X Limited, was incorporated in the Republic of Seychelles in 2011. The exchange went live in 2013 and upgraded from a correspondent member to an affiliate member of the World Federation of Exchanges in 2016. As an end-to-end Regulated Market MERJ has established and administers rules for the listing, trading, clearing, and settlement of securities.

So the Seychelles is no longer, just a pretty face, it is now pioneering the investment world.

View Our Investment Portfolios



S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Australian ASX Small Cap stocks | Why is Australia’s leading small cap publication

Founded seven years ago, is Australia’s leading and longest standing website for investor and finance news, education and expert opinion.

Published by StocksDigital, Finfeed was created to report daily on the comings and goings of ASX listed stocks in the small cap market.

As the first digital publication dedicated specifically to this space, Finfeed soon became the most trusted publication in the market, quickly garnering over two million page views – a number that continues to rise. provides its readers with informative articles that tackle the latest in market moving #ASX small cap news, plus exclusive content you won’t find anywhere else. It is aimed at those with an interest in investing, market education, company performance, start-ups and much more. is the only media organisation operating under the strength of a Financial Services License and is backed by leading journalists and analysts all with brands of their own.

The website aims to inform, educate and entertain with content that drills down into the heart of financial matters.

Finfeed is a leading source of investor and market information, with everything investors need to know about how to invest written in a way that anyone can understand. 

Over the years, the website has expanded beyond exclusively reporting on small caps, to profile Australia’s leading ASX listed small, mid and large caps as well as some of the country’s most successful CEOs and business leaders to find out what makes them tick.

Every day you will find fresh content covering:

Fast Facts

Over 4,000 articles published

Over 2.3 Million Page Views and counting

Over 10,000 followers on social media

Subscriber list growing by 2% monthly

Thanks for subscribing!