One of the first questions many people have for any given fintech platform is how securely they protect user funds.
iSTOX is no exception. It’s one of the first questions many of our investors have for us.
In this post, we speak with Susan Teh, Head of Enterprise Risk here at iSTOX, to gain a deeper insight on the safety measures iSTOX takes.
Q: How does iSTOX protect client funds?
Susan: As an MAS-regulated financial institution, we keep the funds of our clients strictly separated from iSTOX’s own funds. In our case, this means keeping client’s money in a dedicated, segregated bank account held with DBS, Southeast Asia’s largest bank. Among other things, the money entrusted to us cannot (and never will) be used to meet iSTOX’s own financial obligations and it is also completely protected from any claims creditors might make against iSTOX (in the unlikely event this ever happens).
To ensure proper oversight, our client bank account is set up in such a way that any transfer or movement of money must be approved by two designated iSTOX officers from separate departments.
Q: How does iSTOX keep track of client money?
Susan: iSTOX mints a fiat token for every dollar (or any local currency denomination) of client money deposited with us. Fiat tokens are denominated in the same currency as the reference client deposit. You can think of fiat tokens as a digital “currency” that can be used for all your transactions on the iSTOX platform.
iSTOX keeps a record of clients’ fiat tokens on our private, proprietary and immutable blockchain. All movements of fiat tokens are recorded permanently on the blockchain.
To further ensure that all funds are properly accounted for, we have a daily process for checking the amount of money in the dedicated DBS bank account against our record of clients’ fiat tokens. The results of this matching process are reviewed by at least two separate parties daily in order to ensure that there is no discrepancy between actual funds held with DBS Bank and the iSTOX records.
Q: How can I check on the money I keep with iSTOX?
Susan: iSTOX mints fiat tokens for all deposits that you make to your iSTOX account within two business days of your deposit. These tokens will appear in your iSTOX Wallet no more than two days after your deposit is made.
You can check out some answers to Frequently Asked Questions about Investor Protection here.
Singapore-based iSTOX is the world’s first integrated platform for digital securities. Regulated by the Monetary Authority of Singapore (MAS), iSTOX uses proprietary technology to directly connect buyers and sellers. In so doing, iSTOX provides accredited investors with access to previously out-of-reach investment opportunities, including private equity, hedge funds, private debt and more.
To learn more, click here.