Singapore Exchange Invests in STO Platform

Singapore Exchange Invests in STO Platform

As of November 8th 2018, two large financial organizations have invested in Singapore-based Security Token Offering (STO) platform iSTOX. In significantly differing from traditional cryptocurrency exchanges, iSTOX will offer security tokens which can only be bought and sold in fiat currency.

How iSTOX Plans to Launch the Next Security Token Platform

Heliconia Capital Management and Singapore Exchange (SGX) have officially invested in iSTOX, a developing STO platform in Singapore.

The platform was designed by ICHX Tech and aims to offer quick time-to-issuance and a high level of transparency for the sake of both users and compliance. While the platform will utilize blockchain technology and smart contracts, it is not a cryptocurrency exchange. All tokens, both during initial issuance and secondary markets, will be purchased through token/fiat pairings.

The launch of iSTOX is pending receipt of the necessary Monetary Authority of Singapore (MAS) licenses. Once obtained, the platform will go live with all users required to adhere to the Singapore Securities and Futures Act. At the time of launch, only accredited investors will be eligible to participate.

Various executives involved in the project provided comments on the recent investments.

ICHX Tech CEO Danny Toe discussed the future benefits that iSTOX will offer:

“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.”

Derek Lau, CEO of Heliconia Capital Management, discussed his hopeful view of iSTOX rising to the forefront as security tokens disrupt capital markets.

“We see iSTOX as a potential disruptor in the traditional capital markets. As a small and medium enterprise (SME) enabler, Heliconia is excited to support iSTOX in its journey to create the next-generation regulated capital markets platform. More interestingly, we now have the chance to provide SMEs the alternative to capital raising and market liquidity by moving beyond traditional securities exchanges.”

How Security Tokens are set to Reform Capital Markets

As the security token industry continues its preparation to disrupt the traditional financial security sector, the announcement of iSTOX comes with many large investments and developments in the space.

Sharpe Ventures has recently invested in OpenFinance Network’s end-to-end security token platform. In fact, OpenFinance CEO Juan M. Hernandez believes that security tokens will act as the gatekeeper for institutional investors entering cryptocurrency.

Despite the dubious regulatory guidelines for cryptocurrencies from securities authorities throughout the globe, many say that such ambiguity doesn’t apply to security tokens. Harbor CEO Josh Stein says security tokens represent the tokenization of pre-existent financial securities. Such securities are subject to clear, pre-existent laws. So long as those laws are transparently enforced through tokenization, no issues will arise.

With the innovative benefits that security tokens offer coupled with clear regulatory requirements, the evolution of the security token industry is highly anticipated by blockchain advocates across the globe. Securities involving stocks, luxury property, and various funds have already experienced the advantages of tokenization. Even professional sports teams have expressed interest in tokenizing ownership.

With the recent announcement, iSTOX is hoping to pioneer the newest stage of finance:

As a next-generation capital markets platform, iSTOX will be well-positioned at the forefront of a new era for capital fundraising through the use of security token offerings (STOs).”

What do you think of the prospective launch of iSTOX’s security token platform? Will similar platforms continue to emerge throughout the world? Let us know what you think in the comments below.

Image courtesy of SGX.

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