SME stock exchange and crowdfunding platform NPEX announced a partnership with DUSK, the permissionless blockchain network designed to support security tokens. Together they plan to launch a stock exchange powered by DUSK DLT. They also intend to apply for entry into the DLT Pilot Regime, the EU’s program that relaxes a limited number of regulations.
The Regime allows multilateral trading facilities (MTFs) such as NPEX to also take on the post trade settlement role. That’s usually performed by a central securities depository (CSD). For example, the main NPEX exchange uses Euroclear for post trade. To date NPEX has enabled SME funding to the tune of €185 million across 97 financings.
A DLT based stock exchange allows easier voting and lower cost dividend administration. The fractionalization benefit of tokenization offers a less clear advantage when investing in SMEs.
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