INX Limited is ready to acquire Openfinance, the broker-dealer, and ATS which runs the Openfinance digital securities trading platform. The company’s valuation is in the $40 million to $70 million range.
Openfinance to become a part of INX Limited
INX Limited operates the first security token cleared by regulators in the US. Subject to regulatory approvals and other deal conditions, INX will buy 100% of the broker-dealer and alternative trading system (ATS) system. The system helps in facilitating transactions in non-publicly-traded securities. The deal will also include the systems, digital asset listings, licenses, and client base of Openfinance.
Shy Datika, the president and founder of INX Limited, said that Openfinance has raised $25 million since 2017. This brings the company at a valuation range of $40 million and $70 million. However, he did not disclose the details of the deal.
What does the INX Limited plan?
Openfinance is based in Chicago and has offices in Pennsylvania and New York. The company is offering a blockchain-based clearing and settlement platform that allows firms to raise capital using security tokens. It also provides secondary market liquidity for tokens launched via ICOs that are sold as securities. The platform can be accessed by accredited as well as non-accredited investors.
It provides around the clock trading services and manages entire lifecycles of blockchain based digital assets. The lifecycle goes from origination, issuance, exchange settlement, and redemption. It has a huge client base which includes transfer agents working in alternative markets, custodians, banks, and brokerage houses.
Jim Stonebridge, CEO of Openfinance commented on the deal and said,
“INX and Openfinance share the same vision of providing a safe and regulated ecosystem for listing and trading of digital assets. We believe that regulatory oversight, combined with liquidity, will make digital assets the financial instrument of choice for companies and investors seeking to access and raise capital. The consolidation of two leading platforms will be the catalyst needed to move this industry forward.”
INX Limited is trying to strengthen its position in the US market with regulated activities. The firm is based in Gibraltar and even received $130 million via an initial public offering (IPO).