Goal to Make Antigua the Global Digital Securities Powerhouse with a Dollarized Exchange and Fiat Banking
The Antigua and Barbuda Ministry of Finance & Corporate Governance (MFCG), GlobexUS Holdings, Corp (Globex) and Julius Capital Bank Inc., announced they have signed a Memorandum of Understanding to make Antigua a global center of excellence for digital securities issuance and secondary trading on the Ethereum blockchain. The solution addresses key blockchain securities trading obstacles by utilizing Globex’s dollarized securities exchange software directly linked to fiat correspondent banking services for market participants.
The proposed framework combines three critical components for a healthy digital securities marketplace to thrive on the Ethereum public blockchain: (i) government backing with the MFCG establishing the regulatory framework required to protect investors, ensure global financial regulatory transparency for market participants, and maintain national market integrity; (ii) Globex’s proprietary blockchain technology solutions to integrate a dollarized digital securities exchange for compliant issuers to list and trade globally 24/7 with T+0 settlement; (iii) a licensed financial institution, Julius Capital Bank Inc., to provide an accessible fiat banking on-ramp and off-ramp for traders that wish to transact in the Antigua and Barbuda digital securities marketplace.
Dollarized Trading: Globex has developed a dollarized secondary trading solution to provide greater liquidity assurance to investors and offer investors the ability to take part in the secondary market, with its digital security trading-pairs priced only against fiat. Investors deposit, trade and withdraw funds in fiat through a government bank thereby minimizing the risk of cryptocurrency price fluctuations and global regulatory concerns regarding cryptocurrency AML exposure. An issuer’s stock is pegged to the performance of the issuer and not to external, unrelated cryptocurrency volatility.
Correspondent Banking: The issue of correspondent banking and the ability for international investors to move money in and out of blockchain-based exchanges has slowed industry growth to date. Most traditional banks do not transact with funds related to cryptocurrencies, which can extend to blockchain securities exchanges as well. Having a licensed financial institution as part of the equation in Antigua and Barbuda addresses these key banking issues.
“The Antiguan government strongly supports public blockchain technology and believes in the positive impact it will have on how the world trades securities,” says Prime Minister Gaston Browne. “We are thrilled to become a trusted hub for international issuers, investors and market participants to seamlessly and securely conduct affordable digital securities offerings and offer transparent secondary trading in an internationally compliant and regulated manner.”
Prime Minister Gaston Browne continued, “We also believe this technology will pave the way to frictionless blockchain real estate investment services for a global investor base, giving investors access to the lucrative opportunities that our beautiful twin-island state has to offer.”
“The new age of securities is here, and we are honored that our technology solutions have been selected to power this incredible operation,” says Globex CEO Brian Collins. “We believe that having the Ethereum public blockchain integrated with our suite of tokenization, KYC/AML, custody and on-chain trading solutions will encourage market adoption and fuel market growth.”
“We believe that for a truly liquid digital securities marketplace to thrive, frictionless fiat banking needs to be part of the equation,” says Julius Capital Bank’s representative. “We aim to provide that missing part of the puzzle with blockchain-aware banking solutions that will allow participants to transfer their money both in and out of the exchange in an instant. Any such solution will strictly comply with local and international AML and KYC requirements and the new framework to be adopted by Antigua and Barbuda.”
“By combining US methodologies for securities compliance with the future of capital formation using technology, Antigua should set the standard for a safe and secure way for issuers to raise capital and for investors to have access to innovative and exciting companies,” stated Globex President Mark Elenowitz.
Globex utilized its team of Wall Street bankers and technology veterans with 27 years of experience to implement Wall Street securities standards into its blockchain technology. In addition to implementing its proprietary blockchain software technology, Globex, together with local law firms, will provide advice with regard to the establishment of a set of regulatory guidelines for the national digital securities industry that formalizes the regulatory procedures, supervises the certification of trading exchanges, the digital securities custodians, the blockchain trading applications, and market participants. The transaction was facilitated by law firms Reinhardt LLP and Hunter Taubman Fischer & Li LLC, along with the Attorney General of Antigua.
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