The Singapore Exchange (SGX) and Temasek Holdings holdings subsidiary Heliconia Capital Management have invested in iSTOX, a capital markets platform by blockchain-based infrastructure company ICHX Tech. No financial details were disclosed.
ICHX Tech is working towards being regulated and licensed by the Monetary Authority of Singapore (MAS) as a recognised market operator, and the iSTOX platform will go live once the requisite MAS licences have been obtained, according to a statement dated Thursday (8 Nov).
The platform designed by ICHX Tech, a company incubated by Singapore investment firm ICH Group, aims to provide fast time-to-issuance and a high level of transparency for users. While iSTOX incorporates blockchain and smart contract technology in its platform infrastructure, it isn’t a cryptocurrency exchange as all issuances will be bought and sold using fiat currency, the statement said.
“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),” the statement said.
STOs are financial securities that offer flexible issuance structures and can be backed by a variety of underlying assets, which include company shares or debt, among others. Through iSTOX, investors can also gain STO access to liquidity through a secondary trading platform.
Chew Sutat, SGX’s executive vice-president and head of equities and fixed income, and Chua Kim Leng, former special adviser (financial supervision) and assistant managing director at MAS, were appointed to the startup’s board.