Security Token: MERJ Exchange to List Tokenized Offering of Collectible Cars
by JD Alois
MERJ Exchange, the official stock exchange of Seychelles and a marketplace seeking to leverage digital security offerings, has partnered with Liechtenstein-based CurioInvest to tokenize “supercars” enabling investors to participate in security tokens backed by collectible cars.
According to MERJ, the listings could bring up to “500 tokenized cars worth over $200 million onto a stock exchange compliant with the highest international regulatory standards.”
MERJ notes that it is an affiliate member of the World Federation of Exchanges. It expects investing in the security token to be led by institutions.
MERJ draws a parallel with other collectible asset classes like art or wine. A good amount of discussion has swirled around digital assets and esoteric securities – assets that were previously difficult to securitize may now be traded similar to traditional debt and stocks due to “smart” securities.
The exchange points to data that indicates that during a five- and ten-year period, vintage cars have outperformed many other collectible assets with returns of 91% and 288%, respectively.
“Average returns for the past decade have been 334%, according to the latest Knight Frank Luxury Investment Wealth Report. Up until now the exclusive preserve of the world’s super-rich, CurioInvest’s listings will be investable with one dollar,” says MERJ.
The first supercar will be a $1.1 million Ferrari F12tdf. Ferraris are said to currently account for 60% of cars sold for over US $5 million.
Jim Needham, head of digital strategy at MERJ Exchange, says that MERJ is the only regulated market globally that supports “end to end” digital securities:
“CurioInvest has identified pent up demand from institutional investors such as hedge funds and wealth managers. Through its partnership with MERJ Exchange, we are creating an access point for these investors that is compliant through the full cycle of exchange, clearing, settlement and registry.”
By listing on MERJ Exchange, CurioInvest expects to “reach a broader base of both retail and institutional investors, while reducing costs and creating a more efficient process for buying and selling in what has traditionally been a niche and illiquid asset class.”
Fernando Verboonen, founder and CEO of CurioInvest, says they have created a way for institutional and retail investors to gain access to this “booming asset class.”
Verboonen believes that the partnership between the two platforms will offer the “best of both worlds” enabling investors to access a unique combination of “old world assets” tokenized on DLT.
CurioInvest was a top finalist at the UBS Future of Finance competition and a top pick for Fintech by TechCrunch at Disrupt Berlin 2019.
