The stock exchange already has everything planned out with its first company to be listed next month. Additionally, SprinkleXchange plans to list 35 companies within the next one year and 1,000 companies in four years. The exchange operates in Bahrain under the country’s central bank regulatory sandbox.
It’s like moving from VHS to streaming
The stock exchange’s CEO, Alexander Wallin, told Bloomberg:
“We have the luxury of being first with this, but we’re aware it will become a crowded market. It’s like moving from VHS to streaming; Netflix did it nicely and was first, but now there are lots of streaming sites.”
For a listing, SprinkleXchange is interested in companies that have a market capitalization of between 20 million and 200 million US dollars. However, since its technology-oriented, those seeking to be listed must also have “knowledge of the new technology” plus a global footprint.
Apart from allowing users to interact with traditional firms, it will allow crypto trading and has eyes set on launching ETFs (exchange-traded funds).
Although the CEO noted that the cost of listing would be the same as with a Swedish stock exchange, their Ethereum-based version is faster compared to a traditional platform. Additionally, a blockchain based stock exchange has a global presence, and “you get better liquidity.”
“The Ethereum blockchain version…automates central clearing systems, repositories, stock certificates, dividends, and voting.”
More traditional firms are shifting to blockchain
In the recent past, blockchain technology has been finding its way into traditional stock exchanges. For example, the Gibraltar Stock Exchange 0has given the green light for tokenized securities to be listed while SIX, the leading stock exchange in Switzerland, is turning to blockchain technology to enhance trading. Stock exchanges in Jamaica and Spain are among a growing list of traditional firms turning to blockchain technology for solutions.