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SGX Invests in iStox to Develop Security Token Platform

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SGX Invests in iStox to Develop Security Token Platform

The forming of partnerships, meant to expedite the development of cryptocurrency exchanges and take advantage of a fast moving market, is a popular thing to do right now.  While we reported just yesterday of a European securities exchange being developed, today we bring news of a similar product being developed in Singapore.

The Platform

This particular partnership consists of three companies joining forces to release a developed product.  The envisioned platform will offer the ability to not only trade, but issue security tokens.

Those involved in the project are iStox, SGX (Singapore Exchange), and Heliconia Capital Management.  The product to be developed by these companies is expected to launch in the near future.  Launch is predicated on the ability of iStox’ mother company, ICHX Tech, to receive a market operator licence.  These licences are issued by the Monetary Authority of Singapore.

Once active, the platform will require all who use its services to strictly adhere to the Singapore Securities and Futures Act.  Users will be restricted to accredited investors upon launch.  While the exchange will facilitate the issuance and buying/selling of tokenized securities, there will be no crypto-crypto trading.  Purchases on primary and secondary markets will all be completed between crypto/fiat pairings.

Security tokens are an intriguing and promising asset.  However, they are currently hampered by a lack of liquidity in the marketplace.  There simply are not enough places facilitating secondary markets and allowing their trading.  Products like the one being developed by this trio of companies are what is needed in the world of crypto to usher in these new and promising financial products.  A race to establish guidelines and regulations, and to develop platforms is being seen worldwide.  Only recently did we report on the United Arab Emirates and their plan for the industry.

iStox

Both founded and based in Singapore, iStox has multiple offices within the country.  They are a blockchain based online exchange.  As relayed on their website, they strive to be a ‘one-stop solution’ to capital market services.

It is believed that iStox gave up roughly 6.67% equity to each SGX and HCM.  This equates to a total of $1.43million ($730,000 each).

SGX (Singapore Exchange)

A globally renowned exchange, the SGX is known for hosting an expansive amount of listings.  They indicate that roughly 40% of companies listed on their platform have international origins.  By partnering with iStox, they look to bring their experience in traditional finance, and combine it with a specialized blockchain trading platform.

Executive Vice President and Head of Equities & Fixed Income, Chew Sutat, commented on the partnership.  He stated, “As capital markets evolve, companies will seek new funding avenues that suit their different stages of growth and business needs. To advance Singapore’s position as a world-class financial hub, we need innovative solutions that push boundaries and set new benchmarks. We believe this new platform by iSTOX will add to the vibrancy of Singapore’s capital market ecosystem, providing more options for issuers and investors alike.”

Heliconia Capital Management

Operating as a subsidiary of Temasek Holdings, Heliconia Capital is a growing investment firm.  Located in Singapore, they focus primarily upon investing in high-potential Singaporean companies.

Recognizing the opportunity that iStox brings to the table, Heliconia can now place them in their portfolio alongside other companies such as Ascent, CashShield, and more.

Derek Lau, CEO of Heliconia, stated, “We see iSTOX as a potential disruptor in the traditional capital markets. As an SME enabler, Heliconia is excited to support iSTOX in its journey to create the next-generation regulated capital markets platform. We hope this platform can extend the capabilities of Singapore’s current capital markets. More interestingly, we now have the chance to provide SMEs the alternative to capital raising and market liquidity by moving beyond traditional securities exchanges.”

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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.

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