iSTOX, the Singapore Exchange-backed security token platform raised an undisclosed amount of Series A funding from one of the largest Thai investment banks, Kiatnakin Phatra Financial Group (KKP).
While declining to reveal financial terms of the deal, the firm said that KKP is the only investor in the latest funding round.
Proceeds from the raise will be used to grow the user base of qualified investors, issue tokens with a range of securities such as stocks, bonds, and structured products, and expand in Asia.
The platform is owned by ICHX Tech, a fintech infrastructure company with blockchain and smart contract technology that was funded by Singapore Exchange (SGX) and Heliconia Capital Management, a subsidiary of the state-owned investment behemoth Temasek Holdings.
However, in May, iSTOX was admitted into a fintech regulatory sandbox set up by the Monetary Authority of Singapore (MAS), the Singaporean central bank. Chew Sutat, EVP of SGX, and Chua Kim Leng, the former special advisor of MAS have been appointed as the board members of ICHX Tech.
According to a post from the platform, iSTOX has been onboarding its first batch of issuers and investors to launch the digitized securities trading from the fourth quarter of this year.
Aphinant Klewpatinond, the Chief Executive Officer stated:
“The digitization of securities will certainly be critical in intermediating the value chain and offering solutions not yet available in conventional capital markets.” Aphinant Klewpatinond
“Many investors these days are not getting the returns they want from the major public financial markets and are very interested in private market opportunities such as equity in series B start-ups, corporate debt, and hedge funds. By offering issuance, custody, and secondary market trading on one platform, iSTOX provides a one-stop-shop for investors.” Liu
iSTOX has hired three law firms to advise issuers on the structure and issuance process for such securities, which includes Allen & Gledhill LLP, Baker McKenzie Wong & Leow, and Rajah & Tann.
Thus, the market for such securities is “extremely fragmented and opaque” requiring high transaction fees from the middlemen and long settlement times, Liu said, noting only ultra-high net worth individuals and the very well-connected can effectively compete.
Source: Coindesk, Medium.com