Graham Rodford is the CEO and Co-Founder of Archax exchange based in London, England. Graham has almost 20 years of experience in the traditional funds/investment world and is applying that knowledge and experience to digital securities. A testament to Graham and his team’s experience is that Archax is one of the very few regulated digital securities exchanges, in arguably the world’s largest financial centre.
Archax is a London-based regulated exchange for trading asset-backed tokens; the exchange is geared primarily towards the professional investor community. Archax aims to bridge the crypto world and the traditional investment space with an institution-quality approach.
RS: In one sentence, how would you describe Archax?
GR: Archax is a forthcoming regulated, institutional, digital securities exchange based in London.
RS: What is the long-term vision for Archax?
GR: Our vision for Archax is to be the leading venues for the primary issuance and secondary trading of digital securities globally, operating a 24×7 market.
RS: Who will be able to use the Archax platform?
GR: Our focus is in professional investors and institutional clients from all over the world as direct users – both the buy-side and sell-side. Any retail participation will be through brokers.
RS: What differentiators does Archax have from similar exchanges? How will those appeal to the professional investor community?
GR: A focus only on institutions/professional investors – most other venues cover retail flow.
The first digital securities exchange regulated in London, the world’s leading financial centre – most other venues are regulated in peripheral jurisdictions.
Archax team all come from the traditional financial markets world and are used to operating in regulated markets globally.
All our technology partners are proven suppliers to the traditional institutional space.
Archax will be integrated into the existing traditional trading workflow through vendor partnerships
Archax supports industry standard trading APIs like FIX
All the above appeals to the professional investor community.
RS: Archax is a regulated digital securities exchange; can you tell us some more about where you’re regulated and what the regulation means for the investors and companies listed on the exchange.
GR: Most other crypto exchanges are unregulated, and those that are regulated tend to be from peripheral jurisdictions. The traditional institutional investment world does not like trading in venues regulated in those types of jurisdictions, they want to trade on venues regulated in leading financial centres like London.
Companies looking to list a digital security want exposure to the blue-chip institutional investment world – an exchange like Archax gives them that exposure.
RS: You’ve formed a few new exciting partnerships recently; can you tell us some of the benefits these partnerships will provide?
GR: Our partnerships with proven technology firms from the traditional space like Aquis and Quod give us proven capabilities and direct links straight into our target marketplace.
Our partnership with ClearBank gives us institutional-grade banking capabilities – all backed up by the Bank of England.
RS: When do you expect Archax to go live?
GR: We expect Archax to go live in late Q3 early Q4 this year.
RS: As someone with extensive experience in financial markets, where do you envision the digital securities market going in the next 2 years, and 5 years?
GR: It is still early days for security tokens and over the next two years we expect to see the required supporting ecosystem continue to emerge with the key players in primary issuance, custody and secondary market trading establish themselves. The regulatory landscape will evolve too with the regulators in major financial centres clarifying their position regarding security tokens other crypto assets too. The number of firms looking to issue security tokens will grow as well, with larger and more prominent issuances appearing as the whole landscape starts to take shape.
Looking out to five years, all this activity will create liquidity on these new markets and nurture mainstream adoption which we expect to build momentum quite fast. We will also start to see existing financial instruments use blockchain/digital security tokenisation too – as this is a far more efficient and frictionless way of handling financial assets than is used currently – particular in the post-trade clearing and settlement space.
RS: Is there anything else you would like to tell us?
GR: The tokenisation of real-world assets using blockchain technology will not only unlock liquidity and create secondary markets for assets that are currently hard to trade, but also has the potential to disrupt all traditional financial markets too. Already there are more than 150 firms who have used or are looking to use security tokens as a way to raise capital or unlock asset value – a total value of over $2billion, with $400m raised so far. This momentum is building with new initiatives appearing every day. The types of token range from tokenising equity/revenue/debt as a way of raising business capital, tokenising property or funds to create secondary market liquidity, and even tokenising more niche or exotic assets – like art, race horses, diamonds, container ships, aircraft – to unlock value in new, innovative ways.
You can find more news coverage about Archax here.
And reach the Archax home page here.
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.