Fintech leaders collaborate to power the global digital securities infrastructure
Digital Markets (DIGTL), a leading technology platform connecting issuers and investors to a network of global securities trading venues, and MERJ Exchange (MERJ), a global securities market for the digital era, announced a new collaboration with the Liquid Network, a sidechain-based settlement network for the issuance of digital assets on the Bitcoin blockchain, developed by Blockstream.
This collaboration leverages DIGTL’s exchange listing and trading technology, MERJ’s exchange infrastructure and regulatory framework, and the Liquid Network blockchain to provide issuers with the infrastructure needed to reach global retail investors compliantly. The collaborators are aligned on building the financial infrastructure of the future by making investments more accessible to the world.
DIGTL’s platform allows issuers to manage the issuance of digital securities on the Liquid Network, provides direct access to US SEC-registered transfer agent services, and streamlines ongoing reporting obligations for their MERJ exchange listing. DIGTL has completed its integration with the Liquid Network and as a listing advisor at MERJ, expects to issue the initial digital security for a MERJ listing in the fourth quarter of 2021, with several others to quickly follow.
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“We are excited to make the Liquid Network our preferred blockchain for IPOs and listings on MERJ,” said Kyle Fry, Chief Executive Officer at DIGTL. “Issuers can now access and manage their share issuance on the Liquid Network and their exchange listing and trading on MERJ all within our platform. And, with our technology, investors can onboard from anywhere in the world and trade directly on the issuer’s website. This collaboration is an important milestone in enabling efficient and compliant global digital securities trading for retail investors everywhere.”
MERJ operates a stock exchange, a central securities depository (CSD), and a clearing agency, and is the only exchange in the world with this end-to-end and post-trade infrastructure to support digital securities. MERJ will operate trade execution, maintain the shareholder registry on the Liquid Network and handle all post-trade activities including clearing and settling the transactions.
“Technology is key to digitize, disrupt, demonetize and democratize capital markets and with the Liquid Network and DIGTL’s platform we are bringing world-class technology partners and combining them with the highest regulatory standards.” explained Ed Tuohy, Chief Executive Officer at MERJ Exchange.
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The Liquid Network will be the preferred blockchain for digital security issuance by DIGTL’s clients intending to list and trade on the MERJ Exchange. Since its launch, the Liquid Network has amassed more than $1.1 billion in network value and has seen impressive ecosystem growth with several platforms built on the sidechain.
“Collaborating with MERJ and DIGTL is another major step for the Liquid Network in driving the digital securities paradigm forward.” said Dr. Adam Back, Chief Executive Officer at Blockstream. “The issuance of securities on the Liquid Network is one of the main use cases that it was designed for, and being the preferred blockchain for DIGTL’s clients for direct listings, IPOs and trading on MERJ Exchange is very exciting.”.
As part of the collaboration, DIGTL and MERJ Exchange intend to become Liquid Network federation members, to take an active part in supporting and growing the fast-growing Liquid ecosystem.
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