Through this new partnership, Magic Circle will be able to help Asia-based clients list their security tokens on a compliant U.S. security token exchange.
HONG KONG, December 16, 2020- Magic Circle, a provider of STO solutions for SMEs, announces a new strategic partnership with INX, a company conducting the first SEC approved security token IPO. The two companies will work together to promote the global deployment of STO, a way to issue fully compliant innovative financial instruments and raise capital through tokens.
INX Ltd., a Gibraltar-based FinTech company formed in 2017, provides compliant digital assets and security tokens trading. In August 2020, INX received formal approval from the U.S. Securities and Exchange Commission (SEC) to issue registered security tokens in its initial public offering. Based on the filing, the $117 million is set to be the largest crypto IPO in history, with 130 million INX tokens available at $0.90 each. The INX Token is the world’s first security token based on the Ethereum security token standard, ERC 1404, and can be listed on security token exchanges and traditional stock exchanges, including NASDAQ. This IPO is a landmark event for the highly acknowledged security token market globally. INX has also acquired OpenFinance, a U.S. compliant security token exchange. It has additionally obtained the ATS licenses to trade security tokens and expects to begin a new STO trading in 2021.
Magic Circle specializes in providing solutions and tools for both issuers and investors of security tokens. The company helps clients to invest in STO in a compliant and efficient way, and allows them to trade flexibly, while gradually building its own global network of investors. Magic Circle assists Chinese and foreign companies with their security token offerings.
Through a strategic cooperation with INX, Magic Circle will further promote INX’s methods of fundraising and trading with STO to the Asian capital markets. Magic Circle will also share INX’s full process of token design, compliance, and distribution, etc., to help more issuers adopt STO efficiently and cost-effectively. The partnership allows Magic Circle’s clients to raise capital rapidly and list their security tokens on a compliant U.S. security token exchange.
Doer Qu, the Founder & CEO of Magic Circle said,“The SEC granting approval for INX to issue a registered security token in its IPO is an important milestone in the development of Crypto Finance. It proves that effective capital raising and trading through tokens can also gain regulatory approval. This news is significant for the adoption of STO and regulatory improvements around the world. We hope that this strategic partnership with INX will promote global digital asset regulatory practices and bring more regulated digital assets to both institutional and retail investors.”
“We have been aware of the work Magic Circle has done in China and elsewhere in Asia since 2016. We have also been impressed with how Mr. Qu has forged a blockchain path working with governments and private companies in what we all believe to be the future of digital finance,” said Shy Datika, INX’s Co-Founder & President. “In many ways, Magic Circle is similar to INX. We both believe that a strong regulatory foundation is essential for significant adoption and success. We look forward to working together to provide digital solutions, working in separate time zones, but with similar goals. INX believes that all assets will soon migrate onto the blockchain, an opinion recently shared by the Chairman of the SEC, Jay Clayton. We have built a crypto trading platform, and a security token platform under one roof, and have raised capital in the most democratic way possible — directly from the public via the world’s first ever SEC registered security token IPO.We believe digital asset based securities are the ‘Capital Markets 2.0’ platform and a natural evolution of the equities and Forex markets. Listing, trading, and corporate governance are all elevated dramatically when utilized under a digital assets structure. This will push capital raising and trading into an era that wipes away any borders and provide access to significantly more capital and liquidity. ”
Both teams are looking forward to combining their strengths to better the crypto finance industry and give stakeholders an alternative, but compliant, way of investment and trading.
About INX Ltd. INX Ltd., a Gibraltar-based private company formed in 2017, is led by a team of experienced professionals from the regulated trading, capital markets, and blockchain industries. Since late 2017, INX has been developing INX Trading Solutions as a single entry-point for customers for the trading of cryptocurrencies, security tokens, and their derivatives. In February 2018, INX filed a registration statement with the U.S. Securities and Exchange Commission (SEC). The company’s initial public offering, which launched in August 2020, has become the first SEC approved security token IPO. The INX Token holders will be entitled to a 40% profit share of the company’s net cash flow, not including revenues from the initial sale, but they will not be equity holders of the firm. The tokens have features of both utility and security tokens. For more information, please visit https://inx.co/.