Horizon Globex GmbH (“Horizon”), the FinTech company that builds and powers securities exchanges, and MERJ Exchange Limited (“MERJ”), operator of the award winning global securities exchange and an affiliate of the World Federation of Exchanges, have signed a joint venture and licensing agreement to launch “Upstream”, a revolutionary app-based market for crowdfunded securities. Upstream addresses the demand for liquidity in the $5-billion-dollar crowdfunding sector.
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Upstream is accepting listing applications from existing issuers who have completed their offerings on crowdfunding platforms around the world, and who are looking to provide exit-liquidity to their shareholders and offer their shares to a whole new set of fans, investors, and traders.
The crowdfunding industry has billions in tied-up liquidity stemming from a lack of accessible secondary markets. Upstream will provide the first dedicated secondary market for crowdfunded securities to trade in real-time from a user-friendly smartphone app.
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Additionally, Upstream supports securities offerings tied to fan-driven asset classes including athletes, sports teams, celebrities, and musicians that immediately become eligible for secondary trading.
Expected to launch Q1 2021, Upstream will offer regulated trading and settlement of cash market securities to investors of all levels. MERJ market rules prohibit short selling, frontrunning, wash trading and other market manipulations. Upstream technology enforces MERJ market rules using a public orderbook with transparency powered by blockchain technology.
Horizon will join MERJ’s list of approved Sponsor Advisors, authorized to assist issuers through the initial listing process and ensure ongoing compliance with prevailing listing rules. Upstream technology will also be available to all other sponsors, members and brokers to MERJ.
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