iSTOX, a regulated capital markets platform that provides digital security issuance and trading, has raised $5 million in funding from Tokai Tokyo Financial Holdings.
According to a release from iSTOX, the funding also brings a valuable partnership that provides a gateway to accredited and institutional investors, as well as issuers, across Japan via Tokai’s network.
Danny Toe, founder and CEO of ICHX, iSTOX’s parent company, said the partnership is an important aspect regarding their goal of establishing his platform as a leader in the emerging ecosystem for digital securities.
Toe said that “Japan is a very key market for us and we’re extremely happy to partner a well-respected and established institution like Tokai to bring more choice and opportunity to the Japanese financial ecosystem.”
Tokai offers investment and trading services to investors across 149 offices in Japan. Tokai holds consolidated net assets worth USD 1.4 billion and USD 39 billion worth of client assets under custody.
Tateaki Ishida, President & CEO of Tokai Tokyo Financial Holdings, explained that the world of financial services is nearing a pivotal period of change and blockchain tech is among the leading catalysts.
“We believe that forward-looking providers of financial services must embrace this change if they wish to truly serve their clients in the new century. For this reason, we are excited by our partnership with iSTOX and look forward to working with them to better serve the investing community.”
iSTOX recently completed its first digital asset issuance and secondary market listing on its platform. iSTOX has benefited from being a part of the Monetary Authority of Singapore’s (MAS) Fintech Sandbox. Full operation is predicted for the first quarter of 2020.
iSTOX recently struck a similar deal with Kiatnakin Phatra Financial Group, giving it access to the Thai market.
Based in Singapore, iSTOX’s other key other shareholders include Singapore Exchange (SGX), Asia’s leading multi asset market infrastructure and exchange operator and Heliconia, a Temasek Holdings subsidiary focusing on investment in fast-growing companies.
Last September, iSTOX maid a key appointment hiring Lim Mei Shern as its new Head of Compliance. Lim was previously at the MAS where she spent the past 15 years in the supervision of capital markets as well as on areas of Fintech. This appointment is a key indicator of government support of the iSTOX mission.
iSTOX seeks to lead the digital securities transition across Asia. By leveraging blockchain or distributed ledger technology, iSTOX will remove much of the friction intrinsic in traditional security issuance, trading and custody. The reduction of fricion brings with it a reduction in cost and, perhaps, may engender a new generation of esoteric securities.
