The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR")

16/09/2024

Valereum Plc
("Valereum" or the "Company")

VLRM Markets Regulated and Licensed as Digital Asset Service Provider in El Salvador

Valereum Plc (AQSE: VLRM) is delighted to announce the issuance of a Digital Asset Service Provider (DASP) licence for VLRM Markets S.A. DE C.V. ("VLRM Markets") in El Salvador.

This enables VLRM Markets, acting as a regulated and licensed DASP, to establish and operate a real world asset (RWA) ecosystem with three principal parts within El Salvador's progressive regulatory framework:

●   RWA Platform - platform for digital asset creation, primary issuance and secondary bulletin board

●  V-Wallet - an interface for interaction with the RWA Platform, as well as to buy, hold sell and transfer digital assets including stablecoins, cryptocurrency and utility tokens

●   VLRM Markets PRO - bespoke services for professional customers (including trading, brokerage, OTC and custody) to access real world assets, cryptocurrency, stablecoins and/or utility tokens

Following the likes of Binance and Bitfinex obtaining a DASP licence in El Salvador, the licence permits VLRM Markets to facilitate the issuance and trading of a diverse range of tokenised real world assets including securities, bonds and funds, real estate, artwork and collectibles, commodities, intellectual property, image rights and royalties.

VLRM Markets' strategic approach for its RWA ecosystem involves collaborating with industry experts to innovate asset issuance, expand market reach and enhance liquidity in traditionally illiquid assets.

VLRM Markets, a Valereum subsidiary, will operate from its office in El Salvador and, via its DASP licence, intends to make RWA products available to customers globally subject to any applicable digital asset and/or investment rules and requirements.

Expansion into El Salvador

Valereum views El Salvador as a strategic destination for its business expansion. This calculated move is driven by El Salvador's growing economy and its innovative approach to digital business and international trade.

During 2021, El Salvador became the first country in the world to adopt Bitcoin as legal tender, and in 2023 law was passed relating to the establishment of a digital asset regime relating to the issuance of digital assets and other digital asset services such as trading platforms, custodians and brokers under the purview of the Comisión Nacional de Activos Digitales (CNAD). CNAD's mission is to champion sustainable development and foster innovation within the digital asset ecosystem in El Salvador and it is committed to establishing a robust regulatory framework that ensures security, transparency, and trust for all participants in the market and through this, promote financial inclusion and drive economic growth across the country.

Valereum is greatly encouraged by El Salvador's approach to innovation and is aligned with CNAD's mission. Being committed to its long-term strategy in relation to its digital asset business operations, Valereum sees El Salvador as a central pillar of its markets' business and will focus on sustainable growth for the benefit of all stakeholders and market participants.

Head of VLRM Markets, Adrian Hogg commented: 

"We are delighted to have been awarded this licence and we are looking forward to building our new business in El Salvador that will seek via its activities to bridge the gap between traditional assets and the digital world to capitalise on the burgeoning opportunity of the tokenisation of RWA."

Valereum CEO Nick Cowan added:

"Following much hard work behind the scenes, we are delighted that VLRM Markets has been issued a DASP licence and look forward to Valereum Markets establishing a new home in El Salvador and creating a pioneering presence in the realm of real-world assets, driving forward the convergence of traditional finance with the digital economy."

We will continue to update the markets with further developments.

For further information, please contact as follows:

Enquiries:   

Valereum Plc   

James Formolli, Chairman    

Tel: +971 4584 6284   

Stanford Capital Partners           

Tel: 023 3650 3650

Bob Pountney

Patrick Claridge

First Sentinel Corporate Finance

AQSE Corporate Adviser        

Brian Stockbridge    

Tel: +44 20 3855 5551  

The Directors of the Company accept responsibility for the contents of this announcement.

For more information, please visit the Company's website at  www.vlrm.com