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.
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.
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.”
Archax Gears up for Launch with Quod Financial
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.
seriesOne to Utilize ST-20 Standard by Polymath
Various companies have made announcements detailing intended usage of token standards lately. As the development of various crowdfunding platforms in the digital securities sector continues, the time has come for many to choose what they feel is the most promising standard. With this in mind, seriesOne has just announced that they have partnered with Polymath.
This partnership will see seriesOne utilize the ST-20 token standard to issue and manage digital securities. The ST-20 protocol is based off of the Ethereum blockchain, and will allow for seriesOne to maintain compliance with global regulations governing the industry.
The Future is ST-20
For seriesOne, it was a simple choice to settle on ST-20. This token standard was one of the first to be developed specifically with digital securities in mind. As such, Polymath has had more time than most to develop, hone, and market their offering. This effort has seen the standard adopted by various companies, with seriesOne being the most recent.
In their press release, the CEOs of each company took the time to express their thoughts on the announced partnership.
“Investors around the world trust Polymath, which was fundamental to our decision to work together…We are confident that working with the Polymath team using the ST-20 protocol will enhance the process of raising capital on our platform.”
“Polymath is proud to work with innovative partners like seriesOne, who has fulfilled a specific demand for a turnkey financing portal for any fundraising process…We are thrilled to be the chosen technology standard for the seriesOne platform, and we look forward to demonstrating yet again how industry can work together to set a standard for creating and managing a successful Security Token Offering (STO).”
seriesOne is a crowdfunding platform, which specializes in the issuance, distribution, and management of digital securities. Through their platform, issuers are able to effectively, and efficiently, host security token offerings. The company is based out of Miami, and was founded in 2013.
Polymath is a Canadian company, which maintains headquarters in Toronto. The company was established in 2017, and is spearheaded by CEO, Kevin North.
To date, Polymath and their token standards remain one of the most adopted solutions in the young world of digital securities. Their own utility token is available for trading on various industry leading cryptocurrency exchanges such as Poloniex and Bittrex.
In Other News
Each of these companies discussed here today have found their way into our headlines in recent months. For a look at what they have been up to recently, make sure to check out the few articles listed below!
Assurely presents the CrowdProtector
In a recent announcement, Assurely and AXA XL have indicated they are teaming up. The result of this partnership is the launch of the CrowdProtector insurance service.
In this relationship, AXA XL provides the insurance, while Assurely has developed the platform to deliver this service within the blockchain industry.
CrowdProtector is a service that was designed by Assurely, with the intent to provide all participants in crowdfunding events with insurance. The crowdfunding events that this product is tailored towards includes the increasingly popular, STO.
The product works on two main fronts.
- Protect the issuer
- Ensures protection from potential lawsuits brought forth by disgruntled investors
- Protect the investor
- Ensures issuers remain compliant with obligations and transparent with operations, with compensation otherwise
With one of the main draws behind STOs being the safety associated with the process, it is only logical that a third party insurance service would be developed. A service such as CrowdProtector should come as a welcome development for conservative investors looking to partake in the growing sector.
Despite only recently launching, the CrowdProtector service has seen early adoption through various platforms. A few examples of these include TruCrowd, CryptoLaunch, Silicon Prairie, Fundanna, and Nvsted.
In their press release, representatives from both Assurely, and AXA XL, took the time to comment on this development.
“New economic markets, such as crowdfunding or online capital formation, create great new opportunities for the Main Street investor, but also pose new risks…To combat new risks in new markets, investors look for a symbol of safety, validity, and trust. Online capital formation and crowdfunding – both equity and STOs – lack this symbol today. This marketplace needs trust, safety, and confidence among both issuers and investors to thrive; something that regulations and funding portals alone may not completely satisfy.”
Dan Kumpf, CUO of AXA XL, stated,
“We are excited to partner with Assurely and their technology-based underwriting of CrowdProtector™ policies…This solution demonstrates the value of insurance in helping opportunities move forward. New crowdfunding practices are proliferating today. Without proper coverage, millions are at risk. Our work with Assurely is a great example of innovation in the industry. Collaboration between incumbents and innovative InsurTech startups such as Assurely, will yield a positive result for the industry and advance it as a whole.”
AXA XL is a branch of the world renowned insurance provider AXA. They are a company which employs thousands of individuals globally. They maintain 19 offices in 17 different countries.
This New York based company was founded in 2016. They have strived since, to develop a platform allowing for the integration of traditional insurance services within the world of blockchain. The culmination of these efforts, since launch, have led to the aforementioned CrowdProtector Platform.
- Equity Tokens vs Security Tokens March 20, 2019
- Archax Gears up for Launch with Quod Financial March 20, 2019
- seriesOne to Utilize ST-20 Standard by Polymath March 20, 2019
- Assurely presents the CrowdProtector March 19, 2019
- Verseon to use BlockRules Platform for Upcoming Security Token Offering March 18, 2019