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Digital Securities

tZERO Schedules Multiple Securities for Listing on ATS while Archax Establishes Montis Digital- Digital Securities Weekly




Market Overview

In its recently monthly overview of the digital securities sector, STM notes that the overall marketcap comes in at $1,109,675,934 – a 3.7% monthly increase. In the coming months/year’s most expect for the digital securities sector as a whole to skyrocket upwards.  If true, we may not see a sub-billion marketcap again.

While there are a few exchanges boasting high potential such as (Archax, MERJ, etc.), the sector is currently a two-horse race between tZERO and INX.  As it stands, roughly 90% of the overall marketcap can be attributed to this pair.

tZERO to Expand Stable of Listed Assets

In recent days, tZERO has announced the pending support of not one, but two, new assets to its secondary marketplace.

The first of these assets expected to be supported are digital securities issued by Curzio Research.  These tokens represent roughly $11 million of preferred equity, and are known as Curzio Equity Owners (CEO) token.

“After careful consideration, we made the decision to relocate our asset to access greater liquidity and trade on a U.S.-based venue while still providing access to international investors in the 45+ countries that tZERO supports. We are excited to work with our partners at tZERO, which we view as a global leader in providing continuous liquidity for private digital securities.” – Curzio Research CEO Frank Curzio

The second asset expected to see support, shortly after Curzio, are digital securities representing Class A common stock in XY Labs.  With over 24,000 investors currently holding stock in XY Labs, this is a perfect opportunity for tZERO to demonstrate the capabilities and benefits associated with digital securities.

“We are excited to partner with tZERO to enable the trading of the XY Labs digital securities, and provide our shareholders with access to a leading automated and fully compliant trading environment for XY Labs shares.” – XY Labs CEO Arie Trouw

Montis Digital

As it prepares for an anticipated launch, Archax continues to flesh out its services and capabilities.  This was recently on display with the announcement of its new subsidiary, Montis Digital.

Geared specifically towards post-trade activity, Montis Digital will build out its own suite of services based on blockchain technology.  Archax believes that a ‘digitally native’ service such as the one being developed by Montis Digital will allow for investors to benefit from increased efficiencies throughout the entire lifecycle of a digital security.

Archax states that as Central Securities Depositary’s are from a past era, lacking the capabilities blockchain affords, “…the full benefits of tokenisation, such as recording ownership ‘on chain’ or tokens being freely transferable between wallets, cannot currently be fully realised once they are on a secondary market.”

Interestingly, Archax has indicated that the work being done by Montis Digital will be made available to exchanges around the globe, and is expected to support a variety of blockchains.

ADDX Eyes Sustainability

Digital securities exchange, ADDX, has just announced that in collaboration with UOB, a sustainability-focused bond worth $50 million has successfully been digitized.

This $50 million is part of a larger $675 million earmarked for a sustainability-linked bond issued by Sembcorp.  With the overall theme of the bond being sustainability, this $50 million allocation for digitization should act as a testing ground, highlighting the efficiencies which can be afforded investors through use of digital securities.

“The collaboration with ADDX helps our corporate clients such as Sembcorp tap the benefits of digital bond issuance for security, time and cost efficiencies. Such initiatives enable our corporate clients in Singapore and across the region to engage a wider base of investors and enjoy the benefits of asset tokenisation. The use of distributed ledger technology (DLT) and asset tokenisation has strong potential in radically improving how capital markets can operate in the future and it is important our clients can take advantage of such new technologies.” – UOB Head of Group Wholesale Banking and Markets Frederick Chin

Joshua Stoner is a multi-faceted working professional. He has a great interest in the revolutionary 'blockchain' technology.