INX launched its first security token issued by a public company, according to an April 3 announcement by the tokenization platform. The new tokens represent shares of Greenbriar Capital, which trades in untokenized form on the U.S. over-the-counter (OTC) market under the ticker symbol GEBRF and on the Toronto Stock Exchange as GRB.
Greenbriar is a developer of entry-level housing and green energy products. This is the first time its shares have been traded on a public blockchain network.
According to the platform help document, the INX Security Token exists on the Ethereum network and complies with the ERC-1404 Simple Restricted Token Standard. When users purchase security tokens through INX, they must sign a message through Metamask to whitelist their Ethereum address. The smart contract keeps track of which addresses are whitelisted, and if a user tries to transfer tokens to an address that is not whitelisted, the transfer fails. INX claims that it does not hold any security tokens on behalf of users, as these tokens are only held in users' wallets.
To process ethereum gas fees, the platform currently charges a commission of $25 per security token purchased, according to the app’s UI. INX previously listed two other security tokens on its platform: INX, which represents the shares of the platform’s own company; MSCO, which represents the shares of the MS Token art studio. However, these previous tokens represented privately held companies, while GEBRF was the first public company to join the INX platform with full financial disclosure, the announcement said.
INX also offers traditional cryptocurrencies such as Bitcoin, Ethereum, zcash, and others.
Cryptocurrency developers often try to avoid classifying their tokens as securities because that designation requires developers to provide extensive disclosures to the SEC and other government agencies. However, some experts believe that the tokenization of securities will bring benefits to the traditional financial industry.
In September, KKR’s Healthcare Strategic Growth Fund II (HCSG II) was tokenized on Avalanche, Build your network with help from Securitize Capital. In October, the Tel Aviv Stock Exchange announced that it was testing procedures for trading tokenized bonds. Ralf Kubli of the Casper Association believes that tokenized mortgage-backed securities are crucial to preventing future financial crises.
