Crypto trading platform INX plans to raise $130 million via security token IPO. INX security tokens will be registered with the SEC Cryptocurrency trading platform INX, aiming to be an all-in-one shop, is planning to raise up to $130 million through a security token initial public offering (IPO), registered with the U.S. Securities and Exchange Commission (SEC).
Gibraltar-based INX filed a draft prospectus with the SEC, to sell 130 million INX tokens, which are based on Ethereum’s ERC-20-standard. INX token holders will also be entitled to 40% of the company’s net cash flow from operating activities, but not as equity holders, per the prospectus.
Headed by Alan Silbert (brother of Digital Currency Group’s founder Barry), INX aims to set up two trading platforms – differentiating between security and non-security tokens. It also plans to get relevant regulatory licenses and approvals, including money transmitter licenses, a U.S. broker-dealer license and subsequent registration as an alternative trading system (ATS).
Initially, INX plans to obtain money transmitter licenses to operate in 8 U.S. states by the end of 2019, and in “most” U.S. states by the end of 2020, per the prospectus.
“When fully operational, we expect to offer professional traders and institutional investors trading platforms with established practices common in other regulated financial services markets, such as customary trading, clearing, and settlement procedures, regulatory compliance, capital and liquidity reserves and operational transparency,” the firm said, adding:
“In the future, the Company intends to establish a platform for the trading of derivatives such as futures, options and swaps.”
INX plans to utilize the IPO proceeds across functions, including research and development (up to $8 million), sales & marketing (up to $2.93 million), regulatory and legal (up to $3.2 million) and product development (up to $1.6 million), among other expenses, according to the prospectus.