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Makara Capital Withdraws Planned Investment from tZERO

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Makara Capital Withdraws Planned Investment from tZERO

A Long Road Ending in Disappointment

In mid-2018, tZERO and GSR Capital made waves when it was divulged that the latter would be investing over $400 million into Overstock. As the pair approached hurdles over time, the amount to be invested was decreased, in addition to bringing in a third party – Makara Capital. Fast forward more than a year, and the tides have changed – for the worse.

Yesterday, recently appointed tZERO CEO, Jonathan Johnson, announced that Makara Capital has withdrawn their potential investment in the young company. While the original investor, GSR, eventually invested $5 million – down from $400 million – Makara Capital has officially withdrawn their investment entirely.

Russian Spy’s and a fall from Grace

Overstock founder, Patrick Byrne, has recently come under fire within the media, as some truly bizarre developments have taken place. These involve claims that the FBI instructed him to develop a relationship with a known Russian spy.

Ultimately, the situation led to his departure at the helm of Overstock, with Jonathan Johnson being promoted to his role.

It is unclear if recent events surrounding Overstock and Patrick Byrne played a role in this decision by Makara Capital. However, given the timing, it would appear as though these developments were the ‘straw that broke the camels back’.

Stock Reaction

Overstock shareholders have been on a rollercoaster as of late, as each of these events have greatly impacted stock prices. While the company saw large declines in price upon release of the Russian spy news, a strong rebound was experienced upon Patrick Byrne’s replacement.

With news only recently breaking, regarding the withdrawal of Makara Capital from tZERO, time will tell how mother company, Overstock, is affected. With tZERO being a product of Overstock’s blockchain arm, Medici Ventures, the two companies find themselves closely linked.

Short Term Memory

Despite all of these developments, the future is still bright for tZERO. In the midst of the turmoil, including withdrawn investments, personnel changes, etc., they have managed to establish themselves as a leader within the digital securities sector.

People have short term memories, and with the world of blockchain rife with scandals, it shouldn’t take long for people to forget past transgressions.

tZERO

tZERO operates as a branch of Overstock subsidiary, Medici Ventures. This young company is focused on developing blockchain based solutions for the digital securities sector. Their efforts, to date, have resulted in the development of a secondary marketplace which looks to offer digital assets a place to call home.

Makara Capital

Operating since 2008, Makara Capital is a global investment firm. The company maintains headquarters within Singapore. Here, Makara operates under the watch of regulatory body, Monetary Authority of Singapore (MAS).

In Other News

The saga discussed here today has taken over a year to fully develop. The following articles elaborate on the timeline of events as we covered them over this time frame.

GSR Capital turns to tZERO for the Tokenization of ‘Cobalt’

GSR Investment in tZERO Slashed from $400 million to $100 million

Due Diligence Process Delays tZERO Investment

GSR Capital Reduces tZERO Investment by over $390 Million

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Joshua Stoner is a multi-faceted working professional. He has a great interest in the revolutionary 'blockchain' technology. In addition to this, he is a licenced Paramedic in Nova Scotia, Canada. As such, he can provide emergency care/medicine to any situation necessitating it.

Exchanges

Archax to Host Polymath Security Tokens on Upcoming Exchange

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Archax to Host Polymath Security Tokens on Upcoming Exchange

Mutual Aid

With the launch of Archax’s anticipated digital assets exchange looming large, the importance of populating listed assets is crucial.  What better company to fill this need than Polymath? – a seasoned company already responsible for the tokenization of more assets than nearly anyone.

A mutual need was recognized between each company, resulting in the recently announced collaboration between the two.

The Details

This aforementioned collaboration will see Archax become home to assets tokenized through Polymath.  In doing so, investors in these assets will finally be able to tap into higher levels of liquidity – a trait long touted as being key to digital securities.

Archax clients benefit through an increased selection of investment opportunities.

Polymath clients benefit by seeing their tokenized securities become more attractive through new found liquidity and exposure.

Commentary

Upon announcing their newly established agreement, representatives from each, Archax and Polymath, took the time to comment.  The following is what each had to say on the matter.

Graeme Moore, Head of Tokenization at Polymath, stated,

“At Polymath, partnership is part of our DNA. While we make it easy for firms to create and manage security tokens, we rely on the expertise of our partners for areas like secondary trading. We’re thrilled to work with Archax to provide security token issuers with an end-to-end solution for security token creation, management, distribution, and liquidity.”

Graham Rodford, CEO of Archax, stated,

“We are building the first truly global and institutional digital securities exchange based out of London and are looking to list credible token projects from across the world. Partnerships with leading players like Polymath ensure we are integrated into the emerging tokenisation ecosystem and we look forward to working with them and their clients, providing a secondary trading venue for tokens created using their technology.”

Recent Attention

Beyond news of these companies working together, each have found themselves attracting attention in recent days, due to other activities.

Archax was a participant of the recently hosted Security Tokens Realised conference, which was hosted in London, UK.  Our own CEO, Antoine Tardif, attended this event, coming away particularly impressed with a few companies – one of these being Archax, themselves.

Financial Institutions Exploring Digital Securities at ‘Security Tokens Realised’ Event

Polymath, on the other hand, has recently given the public a glimpse at the functionality of their on-going Polymesh project.  The company has high hopes for this blockchain, tailor-built for the digital securities sector.

Polymesh Whitepaper Sheds Light on Specialized Blockchain

Archax

Operating out of London, UK, Archax is an upcoming digital asset exchange, which was founded in 2018.  With the exchange’s pending launch, the team behind Archax has been hard at work, establishing various partnerships to ensure an attractive platform.

CEO, Graham Rodford, currently oversees company operations.

Polymath

One of the more recognizable names in digital securities, Polymath, is a tokenization platform which was founded in 2017.  From their headquarters in Toronto, Canada, Polymath has assisted in the tokenization of over 150 assets to date.

CEO, Kevin North, currently oversees company operations.

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A Pair of London Based Companies Find Common Ground with ‘Corda’

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Team Effort

A pair of London based companies, Archax and VALK, have recently released news that they intend to work in unison in an effort to better serve the digital securities sector.

End-to-End

This newly established partnership was undertaken with the goal of providing clients of each, Archax and VALK, access to a suite of services enabling end-to-end issuance/trading of digital securities.

In order to enable this comprehensive suite of services, each company will bring something different to the table.

  • VALK will facilitate the tokenization, issuance, and management of digital securities
  • Archax will facilitate post trade activities and liquidity through access to secondary markets

What this means, is that digital securities created through VALK will have a home on the Archax Exchange.  The result is that each company, and the respective digital securities, benefit greatly through the aforementioned capabilities.

Past Integration

Beyond their geographical location, there is one commonality between these two companies – use of the R3 Corda Platform.

As clients of R3 Corda, each, Archax and VALK, have access to an open-source DLT based platform, which enables to deployment of smart contracts.

Archax to Streamline Post-Trade Activity through R3 Corda Platform Integration

Commentary

In their partnership announcement, representatives from each, VALK and Archax, took the time to comment.  The following is what they had to say on what this collaboration will mean, moving forward.

Antoine Loth and Elie Azzi, cofounders of VALK, stated,

“We are delighted to seal this partnership with Archax and look forward to being one of the first platforms on Corda to integrate with their exchange. Our clients will now have access to a gateway to liquidity and Archax can benefit from the incredible deal flow of our partners who are issuing, financing and trading very high-quality assets in the private equity, fund, infrastructure and real estate worlds. We are glad to be building the business interface between top performing and reputable institutional players and Archax, the most innovative market venue in the UK.”

Graham Rodford, CEO of Archax, stated,

“We are building the first truly global, institutional market for digital securities based in London. As such, we are keen to list the most credible token offerings – so partnerships like this one with VALK are highly relevant and important to us. Although we are blockchain agnostic in terms of the tokens that we list, we have partnered with R3 to use Corda for our own ledger and post-trade activities, so this collaboration with VALK, who use Corda too, makes a lot of sense. We are excited by the opportunity that the tokenisation of assets brings, and we look forward to working with VALK going forward.”

Speaking with Graham

In mid-2019, we were fortunate to have completed an exclusive interview with Archax CEO, Graham Rodford.  Here, Rebecca Stoner, COO of securities.io, delves into what Archax hopes to accomplish and how they will achieve their goals.

Interview Series – Graham Rodford, CEO of Archax

VALK

Founded in 2018, VALK maintains headquarters in London, England.  The team behind VALK has developed tech solutions which allow for the ‘management, trading, and investment of unlisted assets’.

Cofounder,s Antoine Loth and Elie Azzi, currently oversee company operations.

Archax

Founded in 2018, Archax maintains headquarters in London, England.  Above all, the team at Archax is working to develop, and launch, an anticipated exchange, expected to serve the digital securities sector.

CEO, Graham Rodford, currently oversees company operations.

In Other News

While the launch of their digital securities exchange has taken longer to develop than originally anticipated, Archax remains one of the more anticipated projects in the sector.  As such, we have found ourselves covering news pertaining to this young company on various occasions.  The following are a few articles detailing what, exactly, Archax has been up to as of late.

ClearBank Chosen by Archax to Provide Various Services

Tokeny and Archax form Strategic Partnership

HighCastle Seeks Increased Liquidity through Archax

Globacap to Integrate Services with Digital Exchange Archax

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SIX Acquires Stake in daura – SDX Exchange

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SIX Acquires Share in Duara

In preparation for the launch of the highly-anticipated SDX exchange, SIX announced the successful acquisition of a stake in the duara platform. Daura is a token issuance and registry platform which has seen considerable success over the last year. Now, SIX and its team of collaborators seek to utilize duara’s proprietary software to further the SDX exchange’s capabilities.

A Strategic Advantage – SDX Exchange

As part of SIX’s SDX strategy, the firm partnered with Swisscom, Sygnum Bank, Custodigit and daura. The company intends to utilize the best protocols from each platform in the creation of the SDX exchange. Together, SIX’s team seeks to create a complete security token ecosystem. Here investors and businesses can plan, issue, trade, and manage their security tokens from one easy to understand interface.

Discussing the groups’ strategy, Johannes Höhener, daura chairman and Head of fintech at Swisscom spoke on the importance of the joint development work. Höhener pointed out the team’s other tasks. These tasks include helping to create a new standardizing for the tokenization of Swiss assets. She also touched on the company’s plans to expand into operating private blockchains as part of the overall strategy.

SDX Exchange Partnerships via Press Release

Additionally, Peter Schnürer, CEO of daura took a moment to speak on the benefits and security gained from both investors and companies. He explained some of these benefits including the increased transaction speeds. Typically, traditional securities can take days to settle. The SDX system will allow real-time trading and settlement. Impressively, the platform will be able to tokenize assets in just hours.

Players in the SDX Exchange Project

SIX managed to put together an experienced team of blockchain firms to bring the SDX exchange to life. For example, Sygnum Bank continues to make headlines regarding its September launch date as the world’s first digital asset bank. Also, Deutsche Bourse saw heavy publicity this year after it completed a successful proof of concept of its securities trading ledger. These tests proved many of the advantages obtained when settling securities transactions using distributed ledger technology. Notably, the technology can also tokenize and exchange equity and cash tokens

Daura – SDX Exchange

Duara is an advanced digital share register. The firm also specializes in the issuance of security tokens. In the duara ecosystem, one Tokenized share equates to one newly created share. The reduced costs and added speed simplifies the entire share issuance process. Duara enable enables SMEs to sell stakes in their businesses while reducing the costs of crowdfunding campaigns significantly.

SIX Makes Moves

SIX appears to be ready to take the next steps towards the development of the SDX exchange. The firm’s acquisition of duara shares proves that the company is ready and willing to take all the necessary actions to ensure the success of SDX. Consequently, you can expect to see a lot of hype surrounding the launch of this highly-anticipated platform in the coming months.

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