Inside the JSE's plan to build a blockchain-based capital-raising platform

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In this episode of the TechCentral podcast, Duncan McLeod speaks to Myles Milston, CEO of London-based Globacap Technology, which has received a £4-million (R83-million) investment from the JSE.
In addition to the investment, the JSE has signed a deal with Globacap to create a blockchain-based "private placements platform" to allow small and medium-sized firms to raise capital.
Milston explains in the podcast how the platform will work (and how it differs from a stock exchange), when it will be launched and who it will be aimed at.
Based on experience in other markets, technology companies, including start-ups, are likely to among the most active users of the platform, he said.
The venture, the JSE said, will “enable the raising of infrastructure finance and allow small to medium-sized issuers to raise capital in South Africa”.
Working with Globacap, the JSE will create a centralised platform, based on blockchain technology (developed by IBM), for issuers to raise capital "effectively and efficiently".
Globacap’s platform provides fundraising management tools to automate private issuances in the equity and debt capital markets. It also offers second round liquidity capabilities that allow holders of equity or debt instruments to exit or syndicate their original investment, the JSE said.
Through the partnership, the JSE intends to replicate and adapt Globacap’s offering across African markets, while reducing the execution risk of expanding into new markets and products.
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5 Nov 2020 English South Africa Technology · Business

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