SprinkleXchange, a blockchain-based stock exchange, is aiming to list its first company next month, according to a Bloomberg report.
The Bahrain-based trading platform is developed on Ethereum’s blockchain platform and uses its smart contracts feature for trade settlements.
According to the report, the exchange claims its blockchain-focused approach offers time and cost savings in comparison to traditional stock exchanges given that the exchange operates within a regulatory sandbox created by the Bahrain’s central bank and uses a decentralized clearing and settlement system that uses automation.
Currently, the exchange has been given permission to list a maximum of 10 companies. In addition to that, prices will be set using the Dutch auction method, with the exchange taking a 1% fee.
Apart from listing stocks from companies, the blockchain-based exchange will also offer trading options with digital currencies and, similar to other crypto exchanges, will operate around the clock for both stocks and digital assets. The exchange plans to add exchange-traded funds (ETFs) in the future.
The CEO has revealed as well that the platform is only approaching small-cap companies with a market cap between $20 million to $200 million across all sectors.
CEO Alexander Wallin, has revealed that the exchange is aiming to bring around 35 companies within the next 12 months and expecting to list 1,000 companies over the next 3 to 4 years. Wallin further added that:
“We have the luxury of being first with this, but we’re aware that 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.”
A number of traditional stock exchanges are currently moving to integrate blockchain tech in their platforms. For instance, Switzerland’s top stock exchange, SIX, is also planning to launch a blockchain-powered exchange platform later this year, which will be powered by blockchain consortium R3’s Corda Enterprise platform.
Meanwhile the Gibraltar Stock Exchange has recently started allowing the listing of tokenized securities. The Australian Securities Exchange is notably rebuilding its ageing CHESS settlement platform using blockchain tech provided by Digital Asset. Other stock exchanges, including in Jamaica, Thailand and Spain, have announced as well initiatives involving blockchain technology and crypto assets.