Today, a forth coming digital securities exchange, Archax, has announced a partnership with Quod Financial. This pairing will see Archax turn to Quod Financial for various services, ranging from smart-order routing, trade automation, to order management and more.
These services are made available through integration with Quod Financial’s ‘Adaptive Execution Platform’. Capabilities made possible through this platform will allow for Archax to effectively deliver their product to institutional investors this coming year. If they achieve this goal, Archax will become – with the help of Quod Financial – one of the first offerings of its type seen in the industry.
In their press release, representatives from both companies took the time to elaborate on the development.
“Archax will be the first venue to bring digital asset trading into the mainstream financial community. Existing crypto venues have been primarily retail driven, and so it has been incredibly challenging for our buy-side and sell-side clients to include any form of blockchain-based instruments in their portfolios as they have lacked a regulated and stable venue. Given the rigorous selection process, we are proud to have been selected for this market-changing project to bring both digital assets as well as our data-driven execution intelligence to a wider audience.”
“We wanted to find a best-of-breed partner with an established and proven trading platform used by both the buy-side and sell-side. And one that was ready to handle the complexities of digital assets. Quod’s open, scalable and robust platform fitted the bill perfectly and we are happy to be able to offer it to clients as one of the ways of accessing our exchange…A key decision when evaluating technology providers from the traditional world was to find a platform that could be fully customised to support the new and developing security token space. Quod’s design, using industry standard architecture, allows easier customisation when required. That, coupled with their experience of handling high throughput trading for many tier-one banks and an array of other established regulated clients, made them an ideal partner.”
Quod Financial is an established company specializing in capital markets. Since their launch in 2004, the company has expanded from London to maintaining offices in New York, Paris, Hong Kong, and Dubai.
Company operations are overseen by CEO, Ali Pichvai.
This London based company was founded in 2018 by Graham Rodford, Matthew Pollard, and Andrew Flatt. The company is aiming for a 2019 launch of their platform, designed to act as an exchange for digital securities.
In Other News
Archax, in particular, has found themselves in our news feed various times in past months. They have had an impressive development period, resulting in investments from SPiCE VC among others. Check out the articles below to learn a little more about Archax.
DX.Exchange Goes Bankrupt – CX Technologies Ltd
Additionally, a host of suppliers have taken suit against the company. These suits run the gambit from unpaid bills to the alleged fraud. The well-known cybersecurity firm, White Hat Ltd is one of the company’s claiming losses due to DX.Exchange actions. Another lawsuit lists Bee2See Dotan B.S. Solutions. This is the firm that handled DX.Exchange targeted marketing. Even the company supplying the servers never got paid – Malam Team.
Writing on the Wall – DX.Exchange
Employees and suppliers knew to take action earlier in the month after the firm closed its doors unexpectedly. At the time, DX.Exchange owner Pinhas Patarkazishvili cited the rising costs and dwindled profits the exchange had left. He told employees that he was searching for a merger or acquisition and if that he was unsuccessful, the company would permanently cease operations.
Security Tokens on the DX.Exchange
Will Employees and Affiliates Get Paid?
VNX Exchange Launches, Calling Luxembourg Home
While there are many hurdles yet to be cleared on the way to the mainstream adoption of digital securities, there is one that remains obvious. This would be a lack of marketplace solutions within the sector.
Looking to fill this void in the sector is VNX exchange. The Luxembourg based company has just announced the launch of their digital assets issuance platform, which will work to facilitate the tokenization and sale of assets. VNX indicates that the potential for a secondary market launch will be evaluated in time.
In an event held to mark the launch of the platform, the company even drew praise from the Luxembourg Minister of Finance, Pierre Gramegna. He stated,
“VNX is one of the success stories of Luxembourg House of Financial Technology, the LHoFT”
A Place to call Home
For those that follow the digital securities sector, a geographical trend may have been noted. With forward thinking regulations, and industry clarity, Luxembourg has begun to establish themselves as a nation open to blockchain based endeavours. This has resulted in more than just VNX calling the European nation home. The following companies are just a couple of examples of this.
While the VNX launch is a positive development for the sector, they are not the first to the table, and will not be the last. The following companies stand to be a two of the major competitors in the same space in which VNX is looking to carve out a place.
Wasting no time in the launch of their services, VNX is providing investors with access to an STO straight out of the gate.
This event will see Korean based, Streami, issue €3 million worth of digital securities. The company itself is solution provider within the world of blockchain through services ranging from a cryptocurrency exchange, to custody, and fiat gateways.
The event garnered commentary from representatives of each, VNX and Streami.
Alexander Tkachenko, CEO of VNX Exchange, stated,
“Streami offering demonstrates the real use case of asset backed tokens to finance VC investments.”
Junhaeng Lee, CEO of Streami, stated,
“I strongly believe in the development of the assets-backed digital financial instruments. VNX offering shows how fundraising for VC industry may evolve and by extension implications to the financial industry. I am very excited and proud that Streami is the first offering presented at VNX platform.”
To learn more about the structuring of these digital securities, make sure to peruse the Streami investor deck HERE.
While first conceived in 2017, VNX exchange was founded in 2018. The company operates within Luxembourg, and hopes to transform FinTech through their platform.
CEO, Alexander Tkachenko, currently oversees company operations.
Tokai Tokyo Financial Holdings to Bring Digital Securities to Japan
After spending months developing within the confines of the MAS FinTech Sandbox, digital exchange, ‘iSTOX’, looks to take its first large step forward – towards Japan.
It was recently
announced that Japan based, Tokai Tokyo Financial Holdings, has acquired a minority share of ICHX Tech (iSTOX ‘mother-company’).
This move represents a first for iSTOX, as the company looks to eventually offer their services to investors worldwide.
iSTOX has had a successful year, as they have been on the receiving end of various investments over this time. The first major example would be the globally renowned, Singapore Exchange (SGX), followed by a series of companies in the following months.
This latest investment, which totals $4.58M, equates to a 4.58% share in ICHX Tech. By acquiring the position, it is expected that digital securities, hosted on the iSTOX platform, will now be available to Japanese investors; this being possible through the brokerage capabilities of Tokai Tokyo Financial Holdings.
MAS FinTech SandBox
One of the reasons behind the success experienced thus far by iSTOX, can be owed to the fact that they are one of a very select group to be admitted into the Monetary Authority of Singapore (MAS) FinTech Sandbox.
This program allows for companies to trial new technologies and products, within a structured environment, allowing for continued public/client protective measures.
iSTOX is a subsidiary of Singapore based, ICHX Tech, which was founded in 2017. The company is fervently working to develop, and attain, adoption for their digital securities exchange. This platform, which is currently operative and accessible by accredited investors, is expected to make a full launch in Q4 of 2019.
CEO, Danny Toe, currently oversees company operations.
The team at iSTOX recently announced new growth, as they welcomed a new CCO – Oi Yee Choo. The following article takes a closer look Oi Yee Choo and what she brings to the table.
Operating out of Tokyo, Japan, Tokai Tokyo Financial Holdings is an investment firm, which was founded in 1929. The company is able to offer its clientele a variety of services, pertinent to securities, such as brokerage, distribution, and more.
Company operations are currently overseen by CEO, Tateaki Ishida.
In Other News
Singapore has rapidly established themselves as a leader within digital securities. With clear regulation, and forward thinking, companies have been able to effectively establish themselves within the Asian nation. The following articles are a few examples, highlighting industry moves which involve Singapore.
- Christian Platzer, Co-Founder & Managing Partner of Black Manta Capital – Interview Series
- The Managed Stablecoins are Securities Act of 2019 H.R. 5197
- Max Crowdfund STO Promises to Fuel Tokenization Revolution
- Securitize Increases Ties to Japan through First Acquisition
- The Future is Bright for Bison Trails as Series A Nets $25.5M