The cryptocurrency and security token exchange company INX Ltd. wants to launch in April an $130 million initial public offering (IPO).
The IPO will be the largest securities sale registered by a blockchain-based company. The launch will include presentations to potential investors. The presentations were initially expected to begin in January, but INX hired an investment bank from Europe to be its IPO’s lead underwriter.
Relocation to New York and Obtaining a BitLicense
In order to double down on compliance, INX plans to move from Gibraltar, a country with a friendly blockchain jurisdiction, to New York. This means it will need a BitLicense from the state of New York. People who know more about the situation said INX is already in discussions with the New York Department of Financial Services (NYDFS) to get this license. Calling the requirements for the license onerous, ShapeShift and Kraken stopped their New York activity, but INX is determined to get it, especially since the NYDFS recently started to reassess its requirements.
IPO Proceeds to Fund INX Digital Crypto Exchange and INX Securities
The IPO’s proceeds will fund the INX Digital crypto exchange and the INX Securities security token platform. Among INX’s partners, BitGo and Anchorage will custody the digital assets for the exchange during preparations. BitGo was mentioned by INX in an SEC filing, whereas Anchorage already confirmed that it’s involved.
Tokensoft will provide advisory and technical services, while Quantstamp will be the one auditing the smart contract code, says the same SEC filing. The token released by INX will be listed on both on the INX security token platform and other exchanges. Those who hold INX tokens will get a share from the profits made by the company and be ahead of equity investors in case of repayment as a result of bankruptcy. The tokens will work as trading fees payment too.
INX Has Money Transmitted Licenses in 8 US States
Meanwhile, INX managed to obtain money transmitter licenses from 8 states in the US, which means it will take care of crypto-to-crypto and fiat on-ramp transactions. The top 10 coins will be listed by the exchange according to market capitalization, whereas new derivatives and coins are sure to be added later.