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On January 28th, 2020, developing digital asset exchange Archax announced a partnership with VALK. As both entities utilize the Corda blockhain, the partnership is said to enable financial institutions to both issue and trade regulated digital assets on an exchange based in the UK.
VALK leverages the Corda blockchain to provide services related to the issuance and investment process of unlisted company shares. The company has developed a white-label solution capable of automating all tasks associated with both the buying and selling of unlisted shares. Typically, these tasks are carried out by financial institutions manually.
VALK says its solution was built for established and regulated financial institutions, to include investment banks, asset managers, and fund managers. The end results of the service save money and time, but also increase both deal and trade volume when it comes to unlisted assets under management, says the company.
The service also allows for a number of features thanks to the benefits of blockchain technology. Transactions can be settled on-chain, for example, instantly. In the traditional ‘paper stock’ world, settlement periods frequently take several days to complete. VALK also says its compliant platform leads to an integration with the world’s largest DLT banking ecosystem.
Now, VALK has partnered with UK-based security token exchange Archax. The partnership is said to bring a number of security token offerings (STOs) from VALK’s existing client network to the developing institutional grade exchange, Archax.
According to Graham Rodford, Archax co-founder and CEO,
“We are building the first truly global, institutional market for digital securities based in London. As such, we are keen to list the most credible token offerings – so partnerships like this one with VALK are highly relevant and important to us. Although we are blockchain agnostic in terms of the tokens that we list, we have partnered with R3 to use Corda for our own ledger and post-trade activities, so this collaboration with VALK, who use Corda too, makes a lot of sense. We are excited by the opportunity that the tokenisation of assets brings, and we look forward to working with VALK going forward.”
VALK founders Antoine Loth and Elie Azzi added,
“We are delighted to seal this partnership with Archax and look forward to being one of the first platforms on Corda to integrate with their exchange. Our clients will now have access to a gateway to liquidity and Archax can benefit from the incredible deal flow of our partners who are issuing, financing and trading very high-quality assets in the private equity, fund, infrastructure and real estate worlds. We are glad to be building the business interface between top performing and reputable institutional players and Archax, the most innovative market venue in the UK.”
Based in London, Archax has been in development for several years. The digital asset exchange is known for prioritizing regulatory compliance — a crucial factor in the realm of securities.
Archax aims to provide a means to the highly anticipated liquidity that security tokens are said to feature. It plans to execute its mission by facilitating a compliant, secondary market trading platform for digital assets.
A number of companies have already partnered with Archax, demonstrating the platform’s credibility. Throughout 2019, Archax saw investments from both SPiCE VC and Bletchley Park. It has also secured partnerships with security token issuance platforms Globacap and Smartlands.
What do you think about the partnership between VALK and Archax? Will Archax see success as a premier digital asset exchange? We want to know what you think in the comments section below.
Images courtesy of Archax and VALK.