This week, the blockchain-based startup, iSTOX announced that it had completed a round of Series A funding. iSTOX seeks to bring tokenized financial assets to the Thai market in a major way. The company already has the blessing of both regulators and a vast network of financial institutions. This news demonstrates the growing demand for tokenized assets across Asia. Also, it showcases the trend of traditional financial firms entering the blockchain sector.
According to iSTOX, the company didn’t have to search for long before it found an interested investor to take part in the funding round. The company found a serious investor in one of the largest banks in the country, Kiatnakin Phatra Financial Group (KKP). In fact, the bank was the only investor needed to complete the crowdfunding campaign successfully.
The iSTOX exchange secured an undisclosed amount from this major financial institution. The funds will go towards the expansion of the platform’s investor base. Additionally, iSTOX intends to create a complete blockchain ecosystem. The platform will function as a “one-stop-shop” for businesses seeking to crowdfund their future business operations.
Discussing the platform, iSTOX Chief strategy officer Darius Liu Spoke on how the firm’s strategy adds liquidity to the market. The CSO explained how the company’s all-inclusive approach to the market is “re-intermediating the value chain.”
iSTOX Blockchain Ecosystem
The iSTOX Blockchain ecosystem enables businesses to issue tokens in a streamlined manner that is compliant with the current regulations. The company also allows businesses to tokenize a huge variety of financial instruments. Currently, you can tokenize stocks, bonds, securities, equities, and debt instruments on the platform. This strategy enables more liquidity and the creation of new markets.
The iSTOX exchange also provides token issuers and investors with a secondary trading platform. Secondary trading compliance is a major issue among security token investors. Now, these investors have an option that has the consumer protections in place that these firms are accustomed to.
Company executives want to extend their reach into the Asian security token market in the coming weeks. STOs are more popular than ever in the region. Consequently, multiple Asian governments began wooing new Blockchain firms to their shores this year. Notably, Singapore recently added a regulatory framework to help clarify investor confusion and spur further token adoption in the country.
iSTOX is a subsidiary of ICHX tech. This Singapore-based firm is a pioneer in the Thai FinTech sector. The company offers enterprise-level blockchain solutions and infrastructure. Specifically, the company specializes in smart contract integration. Notably, ICHX obtained funding from numerous traditional financial firms. Primarily, the Singapore Exchange SGX and Heliconia Capital Management were the largest contributors.
Importantly, ICHX was appointed to a group of specially chosen Blockchain businesses tasked with helping develop Singapore’s security token regulatory framework. The appointment was a huge accomplishment for the company because it was by the hand of the Monetary Authority of Singapore (MAS).
The iSTOX platform is scheduled for a fourth-quarter release date. Currently, it’s open to accredited investors only. Additionally, token issuers can submit tokens for exchange listing. You can expect to see iSTOX play a pivotal role in the Singapore crypto market moving forward.
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.