- Gibraltar-based company Valereum plans to purchase an 80 percent stake in the Gibraltar Stock Exchange (GSX) and integrate crypto.
- The new GSX would operate as a normal stock exchange, the exception being that trades can be paid for using crypto or fiat currency.
- Is expected to reduce obstacles involved with monetizing cryptocurrency, making it a more attractive asset to investors.
Gibraltar-based company Valereum previously announced their intention to purchase an 80 percent stake in the Gibraltar Stock Exchange (GSX), which would then be leveraged to establish an integrated exchange where stocks and other financial products could be traded for cryptocurrency.
Wired magazine’s report on the topic included sentiments from Patrick Lyle Young, the executive director of Valereum. Young explained that the new GSX would operate as a normal stock exchange would, the only difference being that trades can be paid for using cryptocurrency, not just fiat currency. Individuals can trade their crypto for stocks, which would then be held in a GSX-owned trust company. Those stocks can then be utilized as collateral for activities, such as bank loans.
Gibraltar, a small British overseas territory located on the southern coast of Spain, has been trying to market itself as a cryptocurrency and blockchain hub. Gibraltar recently approved regulations for crypto businesses based in the territory and has long been considered to be a tax haven.
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If proceedings follow as planned, the new GSX would increase the liquidity and potential applications of crypto, making it a more attractive asset for investors. A large issue faced by many crypto holders is the difficulty of monetizing their coins. Obstacles associated with converting crypto into a more traditional form of currency, such as transaction fees and taxes, could become less prominent when done through GSX dealings.