Next-generation capital markets platform iSTOX admitted to MAS FinTech Regulatory Sandbox, marking key milestone towards licensing in Singapore

SINGAPORE — 24 MAY 2019

  • iSTOX, a next-generation capital markets platform, entered the MAS Fintech Regulatory Sandbox on 1 May 2019.
  • Within the sandbox, iSTOX is onboarding the first batch of issuers and investors, who will participate in issuance and trading of digitized securities on iSTOX from 4Q 2019 onwards.
  • iSTOX is working towards graduating from the sandbox by early 2020 as the first fully-regulated capital markets platform to offer issuance and trading of digitized securities.
  • Partnership between iSTOX and its newly-established Legal Panel will further enhance iSTOX’s capabilities as a next-generation capital markets platform.

I ICHX Tech, a blockchain-based infrastructure company incubated by leading Singapore investment firm ICH Group, today announced that its next-generation capital markets platform, iSTOX, has been admitted into the Monetary Authority of Singapore (MAS)’s FinTech Regulatory Sandbox. Since 1 May 2019, iSTOX has been operating within the sandbox environment, with a view to graduate from the sandbox and transition into full operation by early 2020. After onboarding the first batch of issuers and investors, ICHX Tech anticipates the first issuance of digitized securities within the sandbox environment to take place by 4Q 2019, with the trading of these digitized securities on iSTOX to begin shortly after. iSTOX is working towards graduating from the sandbox by early 2020 as the first fully-regulated capital markets platform to allow issuers and investors to conduct the issuance and trading of digitized securities.

The MAS FinTech Regulatory Sandbox was launched to allow financial institutions and FinTech start-ups to experiment with promising financial products or services within a well-defined space and duration. The sandbox provides a supportive environment for innovative FinTech experimentation and contains the appropriate safeguards to contain the consequences of failure and maintain the overall soundness of the financial system.

iSTOX also announced the establishment of the iSTOX Legal Panel, comprising prominent law firms Allen & Gledhill LLP, Baker McKenzie Wong & Leow, and Rajah & Tann, who may be engaged to provide top-tier legal advice to assist issuers on iSTOX’s digitized security structuring and issuance processes.

iSTOX is a future-ready capital markets platform that is set to usher in a new era for capital fundraising through the use of digitized securities. The iSTOX platform presents a more flexible, inclusive and efficient platform that will greatly benefit both companies looking to raise capital and investors seeking bespoke investment opportunities. In doing so, iSTOX extends the boundaries of current capital markets and will reach out to new segments of capital market participants whose needs are not fully served by existing capital market mechanisms.

Accessibility is a major feature of the iSTOX platform, as it will connect accredited and institutional investors to investment opportunities not traditionally available outside a small, closed group of participants. The iSTOX platform can accommodate digitized securities that utilize bespoke investment structures, and these digitized securities will be tradeable on iSTOX, thereby offering liquidity to investors.

At the same time, iSTOX promotes the enterprise economy by connecting the investor ecosystem with investment opportunities, and delivering funding for cutting-edge projects. With iSTOX, any issuer, be it established companies, younger companies seeking growth capital, funds or even private asset owners may use digitized security offerings as a new mechanism to tap capital markets and receive investments for an idea or venture they believe in.

“We are delighted to have joined the MAS Regulatory FinTech Sandbox, which marks a key step toward our goal of building a future-ready regulated capital markets platform. Our focus during this period is to deploy and develop the iSTOX platform within the sandbox to better serve both issuers looking to raise capital and investors seeking bespoke investment opportunities,” said Mr Danny Toe, Chief Executive Officer of ICHX Tech. “To add to our offering, we are pleased to work with top-tier law firms to further enhance the holistic issuance experience of digitized securities for our customers.”

Mr Darius Liu, Chief Strategy Officer of ICHX Tech, said, “iSTOX is supportive of the goal to encourage more FinTech innovation in Singapore. To this end, the iSTOX platform aims to extend the boundaries of capital markets as we know them today, benefitting Singapore’s own financial services ecosystem in the process. We will continue to work with the authorities and regulators to develop an environment for financial innovation and enhance Singapore’s global standing as a dynamic, well-regulated financial centre.”

In November 2018, ICHX Tech announced that they had received key investments from Singapore Exchange (SGX) and Heliconia Capital Management for the iSTOX platform.

With the admission to the sandbox, the iSTOX platform marks a key milestone towards its aim of being regulated as a Recognised Market Operator under the Securities and Futures Act.

For more information, please visit www.iSTOX.com

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About iSTOX

iSTOX is a future-ready capital markets platform that is set to usher in a new era for capital fundraising through the use of Digitized Security Offerings. The iSTOX platform connects investors with investment opportunities that leverage bespoke investment structures in the form of Digitized Securities.

iSTOX offers a more flexible, inclusive and efficient capital markets platform that addresses the demands of the next generation of investors and issuers. In doing so, iSTOX extends the boundaries of current capital markets and will reach out to new segments of capital market participants whose needs will be served by the digitized security market.

About ICHX Tech

ICHX Tech (ICHX) is a capital market infrastructure company at the forefront of a new era for capital fundraising through its next-generation capital markets platform, iSTOX. The iSTOX platform removes some of the traditional barriers for capital funding, promotes entrepreneurship, and delivers a wide range of bespoke investment opportunities. With this vision, ICHX aims to empower investors and businesses to inspire innovation, build connections and accelerate business growth.

ICHX leverages on its status as an incubatee of the ICH Group, a leading investment firm founded and headquartered in Singapore. Tapping on ICH’s experience and expertise in fund management, investment, and corporate advisory capabilities, ICHX aims to expand the boundaries of the capital markets sector by leveraging on technology that addresses the issues and challenges for investors and issuers today.

About Singapore Exchange

Singapore Exchange (SGX) is Asia’s leading and trusted market infrastructure, operating equity, fixed income and derivatives markets to the highest regulatory standards. As Asia’s most international, multi-asset exchange, SGX provides listing, trading, clearing, settlement, depository and data services, with about 40% of listed companies and over 80% of listed bonds originating outside of Singapore.

SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN and offers commodities and currency derivatives products. Headquartered in AAA-rated Singapore, SGX is globally recognised for its risk management and clearing capabilities. For more information, please visit www.sgx.com

About Heliconia Capital Management

Heliconia Capital Management Pte Ltd is an investment firm and a wholly-owned subsidiary of Singapore investment company Temasek that provides growth capital for Singapore’s leading small and medium sized enterprises, helping them become globally competitive companies. For more information about Heliconia, please visit www.heliconiacapital.com