The Singapore Stock Exchange and Temasek’s subsidiary have invested in a platform that does fund raising via security token offerings.
The Singapore Stock Exchange (SGX) and Temasek’s subsidiary Heliconia Capital Management have invested in iSTOX, a capital markets platform will allow issuers to raise capital via security token offerings (STOs).
«The demands of the next generation of investors and issuers will be different, and this calls for a shift in how we should approach the process of capital funding. Utilising blockchain technology, iSTOX is able to offer STOs and address needs of both investors and issuers which are not adequately met today,» said Danny Toe, chief executive of ICHX Tech, which operates iSTOX.
Fiat Currency Only
Although iSTOX incorporates blockchain and smart contract technology as part of the platform infrastructure, it is not a cryptocurrency exchange.
Hence, iSTOX will not be listing initial coin offerings (ICOs), utility tokens, or cryptocurrency tokens (such as Bitcoin or Ethereum)on the platform. All issuances will be bought and sold using fiat currency, Toe said.
First STO Platform in Singapore?
iSTOX aims to be the first recognised market operator to offer issuance and trading of STOs, and is currently working towards obtaining a license from the Monetary Authority of Singapore. iSTOX will also give investors in STOs access to liquidity via a secondary trading platform.
Under the Securities and Futures Act, STOs are defined as securities and can be backed by a variety of underlying assets. These may be shares in a company, debt, future profits or revenues of an enterprise or project.
Heavyweight Board Members
ICHX Tech’s board members include capital markets veterans Chew Sutat, executive vice president of SGX, and Chua Kim Leng, former Special Advisor (Financial Supervision) at the Monetary Authority of Singapore.
«We see iSTOX as a potential disruptor in the traditional capital markets. We hope this platform can extend the capabilities of Singapore’s current capital markets. More interestingly, we now have the chance to provide SMEs the alternative to capital raising and market liquidity by moving beyond traditional securities exchanges,» said Derek Lau, chief executive of Heliconia Capital Management.