- Gibraltar Blockchain Exchange, subsidiary of the stock exchange, plans to raise $6 million selling digital "Rock Tokens."
- Funds will be used to build a "licensed and regulated" crypto exchange and issuance platform.
- The company has already raised $21 million selling "Rock Tokens" privately.
LONDON — A subsidiary of the Gibraltar Stock Exchange (GSX) is planning to raise $6 million issuing its own digital currency as the British overseas territory looks to take advantage of exploding global interest in cryptocurrencies.
The Gibraltar Blockchain Exchange (GBX), a subsidiary of the stock exchange operator, announced plans for its own "initial coin offering" (ICO) on Tuesday, saying it will issue its own cryptocurrency, "Rock Token," between February 7 and February 14.
GBX will sell up to 60 million Rock Tokens, named after the territory's iconic landmark. The company has already sold 210 million Rock Tokens, worth $21 million, in a behind-closed-doors "pre-sale," which concluded in December.
Gibraltar's Minister for Financial Services and Nick Cowan, the CEO and founder of both the Gibraltar Blockchain Exchange and the Gibraltar Stock Exchange, will host an event in London next week to drum up interest in the ICO.
Crypto craze
The move comes after an explosion of interest in digital currencies in 2017. Bitcoin rose over 1,500% against the dollar last year. At the same time, startups raised over $4 billion issuing their own digital currencies structured like bitcoin through so-called "initial coin offerings."
The large sums of money involved mean traditional financial services and startups alike are looking to get involved in the sector. GSX, which launched in 2014 and only has a handful of funds and debt securities listed on its exchange, is among them. It says on its website it wants to turn Gibraltar into "crypto harbour."
The funds from GBX's ICO will be used to help develop the company as "the world’s first licensed and regulated token sale platform and digital asset exchange" in the EU, although its future in the EU could be jeopardised by Brexit. The more-than-1,300 cryptocurrencies that have been issued to date trade on online exchanges based around the world but most are either lightly regulated or entirely unregulated.
GBX CEO Cowan said: "The introduction of rules-based systems is necessary if the blockchain sector is to reach maturity and if actors are to be assured of market stability.
"Based upon principles of decentralisation and community consensus, the GBX seeks to create a new era of trust, openness and global acceptance for the crypto industry, one quality token listing at a time."
Once it is set up, GBX plans to help launch ICOs as well as function as a trading venue. It promises "a strict due diligence and admissions process as well as a high-quality digital asset exchange."
GBX said Rock Tokens will be used as the medium of exchange on its yet-to-launch crypto exchange, as well as a method of payment for exchange fees.
British overseas territory Gibraltar has long been friendly to cryptocurrency and blockchain-based initiatives. The Gibraltar Stock Exchange hosted the launch of Europe's first regulated bitcoin product in mid-2016 and the territory's financial watchdog launched a new license for fintech companies using blockchain last December.
