An Intellyx Brain Candy Brief
If you’re a mid-sized firm and want to issue securities for fund-raising purposes, going public via an IPO will likely be too expensive, and even on traditional brokerages, settlements take three days. There are few other options, like the Over the Counter (OTC) market or perhaps a non-US stock exchange.
Horizon Globex fills this void with its blockchain-based trading platform that complies with all relevant US-based regulations, as well as international regulations as appropriate. It currently takes advantage of the Ethereum public blockchain for its distributed consensus and smart contracts, but the company is not tied to any particular blockchain infrastructure. With Globex, trade settlements are immediate.
Globex’s most recent announcement is support for rescission, enabling security issuers to recall problematic tokens (say, if KYC or AML policies weren’t followed correctly), then reissuing new tokens after investors successfully complete the required processes.
This rescission capability enables security issuers to improve their compliance posture, eliminates bad actors from participating in the market, and also enables participants to resolve problems with smart contracts – a limitation that Ethereum on its own has been unable to resolve.
Copyright © Intellyx LLC. Intellyx publishes the Cortex newsletter, advises companies on their digital transformation initiatives, and helps vendors communicate their agility stories. As of the time of writing, none of the organizations mentioned in this article are Intellyx customers. To be considered for a Brain Candy article, email us at pr@intellyx.com.
