Singapore Stock Exchange and the government-owned Temasek have invested in a blockchain platform that will connect investors with firms offering security tokens.
ICHX Tech Secures Funding for New Platform
ICHX Tech, a Singapore based blockchain infrastructure company has announced investments from the Singapore Stock Exchange (SGX) and Heliconia Capital Management, a subsidiary of Temasek Holdings.
The announcement was made earlier on Thursday by ICHX on its website. ICHX is being incubated by leading Singapore investment firm ICH Group.
The funds have been raised for iSTOX, a capital markets platform that aims to become the first regulated platform in Asia to offer issuance and trading of security tokens.
Speaking about this latest development, Danny Toe, Chief Executive Officer at ICHX Tech, said:
iSTOX presents a more flexible, inclusive and efficient platform that we believe will greatly benefit both companies looking to raise capital and investors seeking bespoke investment opportunities. […] In this way, we aim to offer a future-ready platform for capital fundraising which offers substantial benefits to complement existing capital market mechanisms.
SGX Executive Vice President and Head of Equities & Fixed Income, Chew Sutat, offered his thoughts as well:
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.
iSTOX, A Regulated Platform
ICHX is working towards obtaining a license from the Monetary Authority of Singapore (MAS) to become a recognized operator. According to the firm, iSTOX will go live once the required approvals come through.
The platform will connect investors with investment opportunities in the form of security tokens that comply with the local laws.
STOs are financial securities backed by underlying assets like shares in a company, debt, commodities or future profits of a company and enable fractional ownership of assets. Security tokens also allow issuing firms to reach more and diversified investors.
iSTOX also plans to give holders of STOs access to liquidity via a secondary trading platform. The firm clarified that iSTOX is not a cryptocurrency exchange as all STOs will be bought and sold using fiat currency.
Mr. Chua Kim Leng, former Special Advisor (Financial Supervision) and Assistant Managing Director at MAS, said:
I see great potential for a blockchain-based platform that is well regulated and supervised. It not only enhances efficiency and creates new investment and fundraising opportunities, but also provides users with greater assurance and confidence in using the platform.
Singapore has emerged as a popular destination for ICOs and blockchain firms due to its crypto-friendly government and clarity in laws. Live Bitcoin News had reported earlier about Temasek also investing in the fiat-to-crypto exchange being established by Binance.
What are your thoughts on regulated STO platforms like iSTOX? Let us know in the comments below.
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