Blockchain company Valereum has announced plans to acquire 90 percent of the Gibraltar Stock Exchange (GSX) as it bids to create a trading venue where cryptocurrencies can be used to buy listed securities.
The deal, which is subject to approval by the Gibraltar Financial Services Commission (GFSC), builds on a previous agreement last October that gave Valereum the option to buy up to 80 percent of GSX.
‘The GSX will be the world’s first exchange to create a seamless and fully regulated bridge that links the fiat and crypto markets,’ notes the announcement.
‘This will give listed instruments on the GSX access to a regulated pool of crypto capital that is not available anywhere else, and it will give cryptocurrency holders the ability to have a direct, verifiable holding in fiat securities.’
The total market cap of cryptocurrency assets surged to nearly $3 tn last November before falling by around half over the following two and a half months, according to data from CoinMarketCap.
Valereum’s aim is to provide listed securities with access to this capital pool. Last year it said it planned to accept all major cryptocurrencies on GSX, including Bitcoin, Ethereum, Cardano and Dogecoin.
‘This simplifying of the acquisition structure is important for all parties and will lead to faster completion of the transaction,’ says Richard Poulden, chairman of Valereum, in the statement. ‘We look forward to working with the GFSC to realize this vision for Gibraltar.’
Over recent years, authorities in Gibraltar have adapted regulations with the aim of encouraging crypto and blockchain firms to the British territory. The enclave is the third-most popular location for crypto hedge funds to domicile, after the Cayman Islands and the US, according to a 2021 report by PwC.