US SEC approves INX Limited’s $125 million token IPO

The blockchain trading platform raised a total of $85 million from 7,200 investors. Details in the announcement show that 42 investors participated in the token IPO.

INX, which is registered with the U.S. Securities and Exchange Commission, hopes to complete its token IPO by the end of April. The company had previously set the end of 2020 as the initial date for completing the token IPO.

Together with $7.5 million in a previous private round and another 39.6 million Canadian dollars (about $32.2 million) in private equity on the Toronto Stock Exchange, the Gibraltar-based company has reportedly raised $125 million.

However, this amount is subject to final confirmation by the TSX (in relation to the placement equity round) and is larger than the initial target set during the IPO offering in August 2020.

According to the announcement, crypto payments in Bitcoin (BTC), Ethereum (ETH), and USD Coin (USDC) accounted for more than half of the amount raised. INX said the investment amount received via cryptocurrency payments has been converted into U.S. dollars.

The $125 million raised from the token IPO will be used to fund the creation of the company’s fully regulated crypto and security token trading platform. The planned blockchain-based service will also give client companies the opportunity to issue and sell tokenized securities.

INX co-founder Shy Datika told Reuters in an interview that the company’s token IPO will pave the way for other companies to issue SEC-approved security tokens.

In a conversation with Cointelegraph, INX co-founder confirmed that the company already has around 30 companies looking to issue security tokens on its platform.

According to Datika, blockchain adoption is catching on among both retail and institutional investors.

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