INX Nears Launch of US$130 Million IPO

A cryptocurrency and security token exchange startup is closing in on what could be blockchain’s biggest initial public offering (IPO) at US$130 million.

According to a report from CoinDesk, INX is aiming for an April launch of its IPO as it begins a roadshow-style series of investor presentations that were originally scheduled for January.

The firm plans to use funds from the IPO to launch a crypto exchange, dubbed INX Digital, as well as a security token platform called INX Securities. The company said in a press release that the cash will also be used to create a reserve fund and for working capital and corporate purposes.

INX has employed the help of an unnamed European investment bank to act as an underwriter for the IPO, the CoinDesk article explains.

Initial coin offerings (ICOs) have faced difficulties in the eyes of the US Securities and Exchange Commission (SEC). The deferral regulator has sued several companies, including Blockchain of Things, ICOBox and Block.one, for unregistered ICOs.

The IPO from INX comes after two years of preparation on the company’s part, including registering with the SEC so it can reach out to the general public for fundraising.

Following its nod from the SEC, INX plans to relocate its headquarters from Gibraltar to New York, according to its recently updated prospectus. That means it will have to secure a BitLicense from the New York state government.

A BitLicense is a business license for virtual currency activities issued by the New York State Department of Financial Services.

The licensing is a rarity in the state, however. According to the CoinDesk report, only about 20 BitLicenses have been awarded since the requirement was enacted in 2015.

If successful, INX’s token will be listed on its own security token platform as well as other exchanges, and token holders will get a share of the company’s profits ahead of equity investors for repayment in the case of bankruptcy.

INX first began its journey to the public markets back in 2018, after the SEC checked off its submission of a confidentially filed draft registration statement for the IPO of the INX Token.

As a part of the offering process, INX has tapped other players in the blockchain space as partners, including digital asset custody company Anchorage and digital asset firm BitGo.

INX has also obtained money transmitter licenses, which allow it to operate in seven different states in the US, the prospectus reads. The company plans to be licensed in almost all US states by June 2021.

With the licensing, INX’s platform will be able to handle fiat and crypto-to-crypto trades.

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Securities Disclosure: I, Danielle Edwards, hold no direct investment interest in any company mentioned in this article.