STO Global Exchange (STGX)
In a recent press release, STO Global-X has announced the launch of their flagship product – the STO Global Exchange (STGX). This product will be available globally, and will serve as a comprehensive platform, tailored towards the exchange of digital securities. For example, this includes services ranging from token issuance, trading, custody, and more.
The launch of this end-to-end solution for the digital securities market comes at a time when the industry if rife with advancements. Various forward thinking companies have identified the future of blockchain, and are actively developing the infrastructure to support its growth. The STGX is a perfect example of one such company.
STO Global-X is the main driving force behind the launch of the aforementioned platform. The Singaporean company was founded in 2018. It was formed as the result of a joint partnership between Coinstreet Partners and Blockchain Worx, and is poised to become a well-known name in the sector.
Above all, STO Global-X functions primarily as a service, enabling management of digital securities throughout their lifespan.
CEO of STO Global-X, Floyd DCosta, spoke on the importance of STO’s. He stated, “Security Token Offerings will radically transform the traditional world of finance…Our integrated technology platform allows for institutions to issue, manage and trade tokenized securities, putting real world assets into fractional ownership on the Blockchain.”
BMI Capital Partners
BMI Capital Partners, is a subsidiary of BM Intelligence Group. The mother company was founded in 1995, and is based out of Hong Kong. Above all, they provide consulting services for anything ranging from finances to communications.
BMI Capital Partners Chairman, Chan Heng, commented on the collaboration with STO Global-X. He stated, “The traditional Initial Public Offering (IPO) process is both costly and time consuming for management teams. In today’s highly volatile markets, companies must be able to respond to changing markets by rapidly securing capital when needed…Present capital market conditions do not efficiently support IPO’s of small and medium size companies (SMEs). STOs can provide an alternate, cost efficient way to fund the growth of SMEs.”
Coinstreet Partners Limited
Coinstreet Partners represents one of companies behind the creation of STO Global-X. They were founded in 2013, and are based out of Hong Kong. Above all, they are currently focusing on the development of a decentralized bank. This is happening with the intention of providing necessary banking services to companies in non-traditional sectors such as blockchain.
Coinstreet Partners CEO, Samson Lee, commented on the alliance with BMI. He stated, “After the first wave of crypto-currencies and utility tokens, we see a much stronger second wave coming — one that is anchored around digital assets and security tokens…Digital asset tokenization opportunities exist in many different spheres, such as equities, preferred shares, bonds, commercial debts, physical commodities, real estate, physical assets, funds or any assets providing an income stream. We expect the market size of security tokens to far exceed that of utility tokens, and are very excited to extend our services into this area in collaboration with STO Global-X and BMI.”
SWARM Announces Swarm Capital Service Provider Platform
Swarm, a U.S. based service provider for the digital securities sector, has just announced the launch of ‘Swarm Capital’.
Swarm Capital, which is built upon the Swarm Protocol, is described as a modular platform which ‘puts the full power of digital securities on the blockchain into the hands of issuers and service firms’.
The company indicates that while Swarm Network continues to be a non-profit, Swarm Capital will look to offer more comprehensive and premium services. Swarm Capital will continue to make use of various Swarm solutions, such as their specialized SRC-20 standard, as well as their Market Access Protocol.
Swarm Capital indicates that the first product to be launched through the service will be known as ‘EarlyBird’.
Despite just being launched, this product has already seen industry adoption by multiple companies. The product works to provide its users (potential token issuers) with a look at market interest in their potential offering, before a token generation event is undertaken.
In their announcement, the Swarm team took the time to elaborate on the need for a platform such as Swam Capital. The following is what they had to say on the matter.
“As SWARM has been delivering on its promise to build an open source protocol while operating as a non-profit, we have consistently seen demand from issuers and other market participants for a service layer that would conveniently allow them to interact with the protocol layer. There has also been an obvious need for seamless integrations with other tools required within the digital security value chain. We realized that the best way to meet customers is with a dedicated entity that can demonstrate the power and flexibility of the SWARM Protocol, as well as enable its customers to use it as a foundation for building their businesses. For us, this is the natural next step to creating adoption for digital securities.”
Launched in 2018, Swarm is a U.S. based company which specializes in asset tokenization. Their efforts have resulted in the formation of various partnerships and developed technologies. To date, Swarm remains one of the few platforms to successfully assist in multiple STOs/DSOs.
Cofounders, Philipp Pieper and Timo Lehes, currently oversee company operations.
In Other News
While we have covered Swarm on various occasions, one of our most recent articles touched on the launch of Swarm 2.0. The following article looks at this, the company as a whole, and their ongoing mission.
iSTOX Exchange Completes Series A Funding
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.
Harbor Square Investments Approved as Broker/Dealer
A Long Road
As of September 26th, 2019, Harbor Square Investments was officially designated a broker/dealer by FINRA. This approval comes after an arduous process that took months to arrive at a conclusion.
By successfully being approved as registered broker/dealers, Harbor now gains the ability to buy and sell digital securities on behalf of both themselves and their client base.
As industry participants continue to gain a footing on what services they will offer their clients, various within the digital securities sector have the ability to act as broker/dealers within their respective regions.
This New York based company has long acted as a broker/dealer in traditional markets. In early 2019, they made a foray into digital securities, through a partnership with tZero.
One of the most well-known names in blockchain, Coinbase became a broker/dealer through the acquisition of Keystone Capital, in mid-2018. This approach was unique, as this allowed for Coinbase to gain the abilities of a broker/dealer in a short amount of time. As touched on, with regards to Harbor, applying for a new licence is a long process – Inheritance of such licensure through company acquisition has the potential to be a much more efficient route to take.
Harbor CEO, Josh Stein, spoke with news outlet, CoinDesk, commenting on the development discussed here today. The following is what he had to say on the matter.
Speaking on the length of time it took to get to this point, he stated,
“It took the regulators a long time to get a handle on the space and understand it and its implications,” Harbor CEO Josh Stein told CoinDesk. “This was very new for the SEC and FINRA, and they wanted to do it right.”
With their new designation in hand, Stein continued, commenting on the future,
“We’re going to provide the technology platform to manage the fundraising, the technology to manage investors, the technology to tokenize and enable liquidity.”
Operating out of the United States, Harbor is a tokenization platform that was founded in 2017. In the time since their launch, the company has managed to create a specialized token standard meant to serve the industry, known as ‘R-Tokens’, in addition to expanding the functionality of their platform.
Harbor Square Investments is a subsidiary of Harbor.
CEO, Josh Stein, currently oversees company operations.
We recently reported on Harbor, as they continue their efforts to serve the digital securities sector. In this recent look at the company, they caught our eye with the tokenization of $100M worth of real estate.
Short for ‘Financial Industry Regulatory Authority’, FINRA, is a regulatory body, given their power by Congress. They are tasked with ensuring compliance among broker/dealers serving U.S. based investors.
CEO, Robert W. Cook, currently oversees the organization’s operations.
In Other News
In recent months, we have seen various companies issue new licencing and designations. This has allowed for various industry participants to expand the services they offer their clients, in a regulatory compliant manner. The following articles highlight one such expansion, along with a look at the various titles held by companies like Harbor.