INX has thrown out its first security token issued by a public company, according to an April 3 announcement from the tokenization platform.
Shares of public companies on the blockchain?
Witness the future in action!
Proud to team up with @greenbriarcorp tokenizing your traditional GEBRF shares for the first time in the industry!https://t.co/sS4p5MIwa3โINX (@INX_Group) April 3, 2023
The new token represents shares of Greenbriar Capital, which trades without a token on the US over-the-counter (OTC) market under the ticker symbol GEBRF and on the Toronto Stock Exchange as GRB.
Greenbriar is a developer of entry level homes and green energy products. This is the first time that its shares have been available to trade on a public blockchain network.
According to the platform's help files, INX security tokens exist on the Ethereum network and conform to the ERC-1404 Simple Restricted Token standard. When a user purchases security tokens through INX, they must White list your Ethereum address by signing a message via Metamask. The smart contract keeps track of which addresses have been whitelisted, and if a user attempts to transfer tokens to a non-whitelisted address, the transfer fails.
INX claims that it does not custodial any security tokens on behalf of users, as these tokens are only held in the user's wallet.
To handle Ethereum's gas fees, the platform currently charges a $25 fee for each security token purchased, according to the app's UI.
Related: Signum Digital Gets Approval to Offer Security Tokens in Hong Kong
INX has previously included two other security tokens on its platform: INX, which represents shares of the platform's own company, and MSCO, which represents shares of fine art studio MS Token. However, these previous tokens have 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 developers to provide extensive disclosures to the Securities and Exchange Commission and other government bodies. However, some experts argue that security tokenization will bring benefits to the traditional financial industry.
In September, KKR's Healthcare Strategic Growth Fund II (HCSG II) was tokenized in the avalanche (AVAX) network with the help of Securitize Capital. And in October, the Tel Aviv Stock Exchange announced that it was testing a tokenized bond trading program. Ralf Kubli of the Casper Association has argued that tokenized mortgage-backed securities will be essential to prevent future financial crises.
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