“The Rock” hopes a new stock exchange will attract crypto millionaires who want to avoid hefty taxes.
looking to enter the fray, at the moment the conditions for securing crypto-backed loans are “not tremendously attractive,” says Poulden.
According to Valereum executive director Patrick Lyle Young, if the company successfully acquires GSX, the exchange will operate as an ordinary stock exchange, with the sole exception that trades can be paid for in cryptocurrencies rather than just fiat. People will be able to exchange cryptocurrencies for stocks, which will be held in a trust company owned by the exchange.
Young declined to talk about the kind of technology Valereum will use to facilitate the cryptocurrency trades. Blockchain technology—the digital, decentralized ledger underpinning cryptocurrency networks—is often touted as a way to bring more transparency to finance, due to the fact that a swarm of computers as opposed to a single party are in charge of validating transactions.