Bloomberg, May 17, 2019
The SprinkleXchange blockchain bourse is about to get its first public listing.
The platform that uses the Ethereum blockchain for settlement and clearing is preparing to list its first company in June, according to Alexander Wallin, chief executive officer of Sprinkle Group SA. It expects it can become home to as many as 1,000 companies over the next 3 to 4 years.
“We have the luxury of being first with this, but we’re aware that it will become a crowded market,” Wallin said in a phone interview. “It’s like moving from VHS to streaming; Netflix did it nicely and was first, but now there are lots of streaming sites.”
The exchange targets companies with a market cap of $20 million to $200 million, and has received interest from all types of sectors, including real estate, forest and biotech firms, according to Wallin. It’s seeking companies that have a global customer base and an investor group with knowledge of the new technology.
Users will get to trade both listed companies and cryptocurrencies around the clock, according to the CEO, who says SprinkleXchange is also looking at listing exchange-traded funds.
A traditional stock exchange system “takes longer and costs more” than the Ethereum blockchain version, which automates central clearing systems, repositories, stock certificates, dividends and voting, Wallin said. Prices will be set through a Dutch auction method, while the company will charge a 1 percent listing fee.
“The cost is about the same as when you list on a Swedish stock exchange, but you get global access and we can show that you also get better liquidity,” he said.
Decentralized settlements and trading in both traditional and cryptocurrencies will lure both investors and issuers, Wallin said.
At Sprinkle we simplify capital markets through innovative technologies and connect people from all over the world to the capital markets.
Our social investing network, SprinkleBit, lowers the barriers of entry by allowing retail investors to get started through a simulator, education, and a social network to copy their friends’ trades. Our next generation stock exchange, SprinkleXchange, is based on blockchain technology. It holds the same institutional quality for order matching and throughput but cuts out the middlemen in post-trade clearing and settlement. By leveraging blockchain technology, brokerage firms from all over the world can trade, clear and settle, 24 hours a day, seven days of the week. In addition to this we provide trading platforms for broker-dealers to reach the next generation of retail investors.