Crypto and Security Token Exchange INX to Raise $130 Million in Landmark IPO

INX Limited, a crypto exchange startup, plans to raise up to $129.5 million through an IPO, in the first security token sale registered with the U.S. Securities and Exchange Commission.

IPO means IPO here: INX, which is domiciled in Gibraltar, filed a draft F-1 with the agency on Monday and will market the tokens to retail and institutional investors through the initial public offering.

INX's target userbase is largely institutional investors, even though like the INX token itself, crypto trading on the exchange will be available to the general public, provided they go through anti-money-laundering and know-your-customer screening.

In this way, INX will be competing with a number of institutionally-focused, regulated trading platforms launching this year - although INX stands out in the breadth of digital assets it plans to list.

Although it is a security, INX's token could also be described as a utility token, since holders will have the option of using it on the INX Exchange to pay transaction fees.

"It is the Company's intention that the INX Token holders' claim for breach of contract will be senior to the rights of the holders of the ordinary shares of the Company in liquidation," the document says.

Before it can proceed with the token sale, INX still has to get the SEC to deem its prospectus "Effective."

Since INX will be listing security tokens, it will have to first become a broker-dealer, which requires a separate registration with the SEC and acceptance into FINRA, a self-regulatory organization, and an.

Alternative trading system, which requires filing additional forms with the SEC. On top of securities-related approvals, to operate as a crypto exchange where investors can buy and sell bitcoin and the like, INX will need money transmitter licenses from the individual states where it does business.

On the crypto side, INX's advisors include bitcoin security stalwart Jameson Lopp, Blockstream chief strategy officer Samson Mow, and Morgan Creek Capital Management CEO Mark Yusko.