Next-generation capital markets platform iSTOX announces investment from SGX and Heliconia, appoints industry veterans to its Board of Directors
SINGAPORE — 8 NOVEMBER 2018
- iSTOX will connect investors with quality investment opportunities that leverage on bespoke investment structures in the form of Security Token Offerings (STOs).
- iSTOX is working towards being regulated and licensed by the Monetary Authority of Singapore as the first Recognised Market Operator to offer issuance and trading of STOs.
- iSTOX has secured investments from Singapore Exchange (SGX) and Heliconia Capital Management.
- Mr Chew Sutat, EVP of SGX, and Mr Chua Kim Leng, former Special Advisor (Financial Supervision) of the Monetary Authority of Singapore, have been appointed as Board members.
ICHX Tech, a blockchain-based infrastructure company incubated by leading Singapore investment firm ICH Group, today announced key investments from Singapore Exchange (SGX) and Heliconia Capital Management, a wholly-owned subsidiary of Temasek Holdings, for its exciting new capital markets platform iSTOX. The iSTOX platform is designed to provide fast time-to-issuance and a high level of transparency.
ICHX Tech has also appointed two financial industry leaders to its Board of Directors, whose expertise in capital markets will be instrumental in the development of the iSTOX platform. Joining the board are Mr Chew Sutat, Executive Vice President and Head of Equities & Fixed Income at SGX, and Mr Chua Kim Leng, former Special Advisor (Financial Supervision) and Assistant Managing Director at MAS.
ICHX Tech is working towards being regulated and licensed by the MAS as a Recognised Market Operator. The iSTOX platform will go live once the requisite MAS licenses have been obtained.
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).
STOs are financial securities which offer flexible issuance structures and can be backed by a variety if underlying assets, including shares in a company, debt, real assets, or future profits and revenue of an enterprise or project. The STOs will allow for fractional ownership of assets, potentially enabling issuers to build a broader, more diversified investor base.
iSTOX will also give investors in STOs access to liquidity via a secondary trading platform.
“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,” said Mr Danny Toe, Chief Executive Officer of ICHX Tech. “In this way, we aim to offer a future-ready platform for capital fundraising which offers substantial benefits to complement existing capital market mechanisms.”
“The iSTOX platform was developed in anticipation of how the capital markets sector will evolve in the future. 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. In essence, STOs extend the boundaries of capital markets as we know them today, and this is why we believe STOs represent the future of capital fundraising.”
While iSTOX incorporates blockchain and smart contract technology as part of the platform infrastructure, it is not a cryptocurrency exchange as all issuances will be bought and sold using fiat currency.
Mr Chew Sutat, Executive Vice President and Head of Equities & Fixed Income, SGX, said, “As capital markets evolve, companies will seek new funding avenues that suit their different stages of growth and business needs. To advance Singapore’s position as a world-class financial hub, we need innovative solutions that push boundaries and set new benchmarks. We believe this new platform by iSTOX will add to the vibrancy of Singapore’s capital market ecosystem, providing more options for issuers and investors alike.”
Mr Derek Lau, Chief Executive Officer, Heliconia Capital Management said, “We see iSTOX as a potential disruptor in the traditional capital markets. As an SME enabler, Heliconia is excited to support iSTOX in its journey to create the next-generation regulated capital markets platform. 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.”
Mr Chua Kim Leng, former Special Advisor (Financial Supervision) and Assistant Managing Director at MAS, said: “I see great potential for a blockchain-based platform that is well regulated and supervised. It not only enhances efficiency and creates new investment and fundraising opportunities, but also provides users with greater assurance and confidence in using the platform.”
For more information, please visit www.istox.com