The Monetary Authority of Singapore (MAS) has given green light to a tokenised securities trading firm for full operations within the city-state.
Announced Monday, iSTOX has graduated from the Singapore central bank’s fintech regulatory sandbox and is set to be one of the first securities token platforms that is licensed as a capital markets services provider, said the platform’s operator ICHX Tech.
Based in Singapore, iSTOX is an end-to-end digital securities platform. In November of 2019, the company completed what it refers to as the world’s first issuance, custody, and trading of a blockchain-based digital security on a single platform.
Starting in May of 2019, the platform operated out of the MAS’ regulatory sandbox. The mechanism was designed to allow FinTech companies to test their product in a live yet limited and regulated environment.
The platform will provide both institutional investors with issuance, custody and trading services for digitised securities. One of the firm’s goals is to open certain parts of the financial market to more investors, said its Chief Operating Officer, Darius Liu.
The Backers of the Security Token Platform
Digital securities, which are also referred to as security tokens, allow for the reduction of costly middlemen, nearly instantaneous settlement cycles, and a global market easily accessible to new pools of investors. Since the securities are powered by distributed ledger technology, security token trading enables full-time operations 24/7.
The platform has received several high-profile backers throughout the region of Asia. Back in late 2018, both Heliconia Capital Management and Singapore Exchange (SGX) invested an undisclosed amount in iSTOX. In November of 2019, Tokai Tokyo Holdings invested $4.58 million for a 4.8% stake. Much recently, iSTOX announced a $5 million investment from South Korea-based asset management firm, Hanwha.
Securities, whether in traditional or digital form, must adhere to strict regulatory requirements in the majority of jurisdictions throughout the world.