Dutch SME stock exchange NPEX and Dusk, a permissionless blockchain network focused on security tokens, have announced plans to launch a stock exchange powered by Dusk DLT. Their intention is to apply for entry into the EU’s DLT Pilot Regime, a programme designed to facilitate the development of DLT market infrastructures by relaxing a limited number of regulations.
Dusk’s technology aims to provide easy access to financing and trading via “smart contracts”, enabling users direct access to a wide range of investment products. According to a press release, these smart contracts offer investors the opportunity to vote more easily, receive dividend or invest in fractions regardless of size while exploring the potential benefits of tokenisation.
Dusk will serve as the exclusive application manager for NPEX, ensuring the maintenance and continuity of the blockchain platform. Additionally, Dusk will be responsible for developing new functionalities in anticipation of the changing needs of customers, NPEX, and the regulators. This is not the first time the two companies have collaborated – Dusk invested in NPEX in 2020.
Pilot scheme
Together, NPEX and Dusk are preparing an application for the EU DLT Pilot Regime. This pilot introduces a temporary pilot scheme for market infrastructures overseeing trading and settlement through DLT. It allows multilateral trading facilities (MTFs) such as NPEX to take on the post-trade settlement role, which is usually performed by a central securities depository (CSD).
Want to learn more about DLT? Join us at PostTrade360° Nordic 2024 on 4-5 September in Stockholm and follow our series of sessions zooming in on applications of DLT in different parts of the post-trade landscape. Get your free ticket here.