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.”
KoreConX partners with SME Brokers
It was announced recently by KoreConX that they have partnered with and Australian start-up, known as SME Brokers.
This partnership entails SME Brokers exclusively using the platform offered by KoreConX. In doing so, they will bring the benefits made possible through digital securities to their network of enterprises. With a portfolio of over 60,000 SMEs worldwide, their reach is far extending. Each of these companies will now have the ability to issue their own security tokens with ease.
This platform, offered by KoreConX, utilizes their very own security token protocol. These are known as KoreTokens. These KoreTokens incorporate AI to self-govern. This means that these tokens will always remain compliant to regulations throughout their lifecycle.
It is this type of flexibility afforded through KoreTokens and the KoreConX platform that attracted SME Broker. With KoreConX currently undergoing their very own STO, and utilizing the KoreToken for the process, they should be well set to make their mark in the industry.
Undergoing a recent expansion, SME Brokers now find themselves with operations on both Wall Street, and in the heart of Silicon Valley.
The team at KoreConX describes themselves as a utility knife. Their developed platform is diverse in its functionality. Through it, they are able to provide any needed assistance to a company throughout their growth cycle.
In recent weeks, KoreConX has announced similar partnerships with both Evoke Capital, and BlockchainAgility. Those that have come on board to utilize the KoreConX platform are part of what they call the ‘KorePartner Ecosystem’.
Commenting on the SME Broker integration was KoreConX CEO, Oscar Jofre. He stated, “As a global platform, it is important for us to demonstrate we have KorePartners who understands our business and supports it 100%. SME Brokers is just that partner for us at KoreConX. They understand small and medium-sized companies and see the changes in the global marketplace…This is why they support our security token protocol and platform exclusively in Australia, and we are thrilled to have them part of our family of KorePartners.”
With the developing of their KoreToken, KoreConX has broken the mold of utilizing ERC-20. In recent weeks they have spoken out on their protocol. They believe it will better serve not only companies like SME Broker, but the industry as a whole.
Through its access to various forms of management and development programs, SME Brokers is able to aid the growth of their network of SMEs. Now, with this partnership, their toolbox for helping companies grow has grown even larger.
SME Brokers’ managing director, Michel Aliphon, spoke on the use of the KoreConX platform. He stated, “We always strive to provide the best solutions to our clients. We can rest assured knowing that KoreConX developed a security token protocol and an all-in-one platform that is mainly focused on compliance and follows the regulations in multiple jurisdictions.”
Vertalo Partners With Securrency, Integrating Protocols Into Platform
This platform integration will allow for Securrency to benefit from the cap table services, compliance oversight, and other offerings by Vertalo.
One such offering will be open to those that issue their own security tokens via Securrency. They will now gain access to Vertalo’s ‘Liquidity Enablement Platform’.
What all this means is that companies interested in issuing their own digital security, can do so with relative ease. They will be able to rest assured, knowing that their issued tokens are fully compliant with securities regulations. At the same time they will also benefit from an increase in coveted liquidity.
These protocols are known as CAT-20, and CAT-721. Each are tailored for use as security tokens. CAT stands for Compliance Aware Token, and is marketed as an ‘interoperable ledger-agnostic security token protocol’.
After issuance, these tokens can be utilized on any blockchain. This may range from ETH to EOS, and even STR. These tokens inherently govern themselves, to ensure constant adherence to regulations.
The announcement of these protocols was made in early October in a press release. Here, Securrency CEO, Dan Doney, stated, “We developed the CAT-20 and CAT-721 standards because security tokens should be truly liquid – they should not be limited to one ledger and they should be easy to trade, transfer and regulate…This new protocol will enable speed, efficiency and transparency for issuers – from Wall Street to Main Street – while meeting compliance at a global scale.”
Founded in 2017, Vertalo is based out of Austin, Texas. They specialize in both compliance and communication services, for companies based on blockchain.
Speaking on the partnership with Securrency was Vertalo CEO, Dave Hendricks. He stated, “Securrency has identified compliance as a precondition for adoption of digital assets by regulated financial institutions. Through its integration with Vertalo’s Registry and compliance service, Securrency enables issuers, broker-dealers and custody platforms to launch offerings that eliminate regulatory hurdles and meet internal risk management requirements.”
With other partners such as OpenFinance, Polymath, PrimeTrust and more, Vertalo is set to become a major player within the security token industry in the coming years.
Founded in 2015, Securrency is based out of Washington, D.C. They are a technology company that facilitates the issuance and trading of digital securities.
Speaking on the partnership with Vertalo was Securrency CEO, Dan Doney. He stated, “Through this unique pairing, Vertalo and Securrency will be able to provide their clients with the promised compliance alongside improved liquidity for their assets, thus ensuring a seamless trading process unparalleled by other organizations. We believe that this collaboration will help us follow through on our commitment to simplicity and transparency for our clients.”
Malta To Have First Gold Back Security Token
The crypto friendly country of Malta is again in the news after the signing of a Memorandum of Understanding (MOU) regarding the issuance of precious metal-backed tokens. The agreement explains the intent of the Canamex Gold Corporation to issue a gold and silver backed token.
These security tokens are the first precious metal-backed tokens to receive official licensing from a government. Canamex Gold Corporation plans to list their new tokens on the Malta Digital Exchange (MDX). There are significant advantages that the MDX partnership brings to the equation.
For one, MDX is based in Malta. Malta is a pioneer in the blockchain space. The country was one of the first in the world to release crypto legislation which included specifics regarding distributed ledger technology. It is this regulatory framework which makes Malta an ideal location for blockchain-based businesses.
Speaking on the strategic partnership, MDX CEO Rick Klink discussed the advantages gained from working with Canamex Gold Corp. He spoke on blockchain technology and its ability to “democratize capital markets globally.” He explained how the transparency provided by this innovative FInTech is essential for the development of the market.
Last month MDX announced the launch of their institutional grade security token platform. After recognizing the growing need for more regulatory measures, executives decided the security token arena fit the company’s goals. The platform utilizes Paritech technology that simplifies the trading process. Additionally, the exchange received licensing from the Malta Financial Services Authority.
MDX Adds Liquidity
MDX will provide a secondary trading market for Canamex Gold’s GOLDUSA and SILVERUSA tokens. Canamex Gold’s CEO described the partnership between the two as an exclusive deal that has the potential to “move the needle” in terms of security token adoption.
By speaking on “moving the needle.” Klink pointed out the fact that the concept of precious metal backed tokens is not new. Numerous firms such as GOLDX have offered similar services since the beginning of the year. The Russian government even discussed the concept in September 2018. What makes the MDX partnership deal unique is the use of security tokens.
Security tokens adhere to strict government standards. Unlike utility tokens, all security token offerings require the token issuer to provide company information such as financial statements, management process, and company location.
These requirements protect investors from the high level of fraud committed in the cryptospace every year. The Statis Group conducted a study that found that 80 percent of ICOs in 2017 were scams.
Likewise, investors must provide additional information when compared to a traditional utility token transactions including undergoing identity verification. There are no anonymous security token transactions. Security tokens follow securities guidelines.
Malta Sets the Stage
Both the US and EU have shown signs of hesitation when approaching the regulatory framework needed to further security token adoption. The Maltese Parliament saw the need for detailed crypto regulations and took the initiative. Now, Malta intends to take the lead in security token adoption.
- KoreConX partners with SME Brokers November 16, 2018
- Vertalo Partners With Securrency, Integrating Protocols Into Platform November 15, 2018
- Malta To Have First Gold Back Security Token November 14, 2018
- Ripple files ‘Notice of Removal’ November 14, 2018
- Bitstraq Granted Maltese VFA Licence November 14, 2018