In a recent interview, MERJ Exchange CEO Edmond Tuohy expressed that his company will list the first security token on a national stock market. The listing will feature tokenized shares in MERJ Exchange.
MERJ operates markets for the listing and trading of equities, debt, derivatives, Forex products, and more and is the only licensed stock exchange in Seychelles, an island nation in the Indian Ocean. It will list tokenized collectible cars worth over $200 million for retail and institutional investors.
MERJ said Friday it is partnering with CurioInvest, a tokenization platform building on ethereum, to create tokens representing shares in “supercars” like the Ferrari. While the sale is open to institutional and retail investors, purchases are expected to be driven by institutional investors and those from regions with restrictions on auto imports, such as China.
One Dollar Investment
The first supercar on the slate is reportedly a $1.1 million Ferrari F12tdf, which will be stored and managed in a vault Stuttgart. Interestingly, Ferraris account for 60% of the cars sold for over $5 million, and CurioInvest said the cars are investable with one dollar.
Supercars as an asset class are consistently one of the best-performing assets in the world, beating the likes of traditional asset classes, including collectables such as watches, fine wines, and jewellery. They outperformed all other collectable assets making an average return of more than 300% over the past decade, the exchange said.
“The buying is expected to be led by regions with restrictions on auto imports like China, and institutional investors; … with the partnership, we are creating an access point for these investors that is compliant through the full cycle of exchange, clearing, settlement and registry.”
– Jim Needham, head of digital strategy at MERJ Exchange.
Being the First
MERJ claims to be one of the first compliant national exchanges to list its own tokenized equity on the ethereum blockchain. It said investors will have direct access to the exchange through a computer or mobile app. Its institutional clients can gain access via traditional broker channels.
The exchange said the listings will enable more people to invest in rare and luxury cars, which has been an asset class otherwise inaccessible to the vast majority of investors.