In October, at the Hong Kong FinTech Summit, the Gibraltar Stock Exchange (GSX) launched the Gibraltar Blockchain Exchange (GBX), aiming to be a world leading token sale platform and cryptocurrency exchange.
The Government of Gibraltar has created Distributed Ledger Technology (DLT) regulations that come into effect 1st January 2018. The scope of these regulations will encompass companies utilising Blockchain technology, such as the proposed structure of the GBX. The GBX intends to offer a higher standard for participants in the cryptocurrency markets. It is a subsidiary of the Gibraltar Stock Exchange (GSX) which operates an EU regulated market, the Main Market, recognised by ESMA (European Regulator) and HMRC (UK), and the self-regulated Multilateral Trading Facility (MTF), the Global Market. The years of experience on governance and due diligence gained from the GSX has come into play in the development of the GBX eco-system.
Gibraltar, a member of the EU, has long been a pioneer in the digital technology space and is a fully regulated jurisdiction with passporting rights. It aims to welcome, support, provide structure and foster growth in the crypto community, in the same way that it has provided a harbour for the gaming community. With the GBX, Gibraltar will become “The Crypto Harbour”.
By building a well-governed community, establishing best practices, and a gold standard code of conduct for token sales, the GBX aims to be the platform for the next generation of the crypto-economy. Advisory, corporate, and payment services are a planned part of the integrated offering. The GBX aims to provide an end-to-end ecosystem for listings, trades, wallets, corporate services, and KYC/AML services.
By accepting only quality offerings which have undergone a thorough vetting process, the GBX aims to create a new standard of excellence in listings. Only these carefully vetted projects will be offered the opportunity to be listed and traded on a trusted, well governed platform with a strong, supportive community. As part of the proposal all GBX listed projects would be eligible for consideration for facilitated access to list on the GSX, giving crypto start-ups more options to raise capital and access to more diverse traditional investor bases, as they grow.
For those issuing token sales for their value-based, disruptive new platforms, the GBX aims to provide incubator and development services along with a marketplace that intends to offer stability and transparency. Part of the GBX eco-system aims to provide an innovative sponsor staking process for establishing new blockchain projects. Coupled with plans to establish diligent white-listing procedures, a token marketplace that consists only of high quality listings and an elite top-tier AML/KYC cleared investor pool.
Sponsor firms would be responsible for bringing tokens to market and assume specific ongoing responsibilities for their sponsored listings, assuring a committed and ongoing relationship between sponsors and new offerings.
To guarantee its clear governance and vision, the GBX Alliance, a planned association of legal advisers, tech firms, academia and investors, will constitute an international forum, supporting development of the crypto community within the GBX.
The GBX Alliance Council, chosen from the GBX Alliance, would establish guidelines and standards for listing and trading, and set sponsor firm entry criteria. The GBX and all of its branches and procedures will be overseen and supported by the GBX Alliance, aiming to provide participant protection and security on all levels.
On 30th October 2017, the GBX launched the private pre-sale of the Rock Token (RKT), the official utility token for the developing eco-system of the GBX & GSX, with a current token sale target of $27m (Please see https://gbx.gi/ for updates.) RKT will fund the development of the GBX platform. It will serve as a medium of exchange, facilitating and recording transactions, paying for listings, trades, membership and other fees. RKT could also be used for voting on select community developments, subscribing to tokens for future project offerings on the GBX and as a portal to Blockchain Innovation Centre campaigns and incentives.
The founders of the GBX have an established record in building innovative exchanges. The Gibraltar Stock Exchange, formed in 2014, is a pioneer in the market, with an ambition is to be completely run on blockchain technology. This would afford a level of security, speed of transaction and transparency never before possible on an exchange. Sale of the Rock Token is key to helping facilitate this next new level of excellence and innovation.
With its own utility token and experience with its token sale, the GBX intends to gain a clear understanding of what each blockchain project entails in its journey, from inception, incubation, funding, token sale and platform development, on to full market realisation. By truly understanding this process, the GBX would be better able to serve those offering innovative new platforms in the blockchain space.
Use of the GBX Rock Token (RKT) could help create an entire ecosystem, enabling businesses, from start-ups to established corporations, the necessary guidance for all their unique evolutionary journeys. We call this, the token offering to IPO path. Not only could the GBX assist new blockchain projects with token offering, listing and trading functionality, it may also assist in taking the project forward to a full stock market public offering and listing, if desired. To help create and develop these pathways, there are other planned offerings, including an e-money license to assist those in need of access to financial systems, including e-wallets and card payments. Ultimately the GBX aspires to build a new fully fledged digital bank, with banking relationships worldwide.
With these proposed foundations, the GBX seeks to become a leading digital asset marketplace and ecosystem. Building towards a new era of certainty and stability for the world of blockchain technology. Members of the fintech community could find their home for a secure, supported and vibrant crypto community. Today’s current storms in uncharted waters for new projects and eager participants in this exciting new dawn of technology will pass, and Gibraltar’s GBX could be that harbour from the storms. The Crypto Harbour.
The GBX Rock Token (RKT) launched on 30th October 2017 in a pre-sale.
Please visit: https://gbx.gi/ for updates.
Contributing authors to the above piece were Juliet Annerino and Sonal Patel.