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Next-generation capital markets platform iSTOX admitted to MAS FinTech Regulatory Sandbox, marking key milestone towards licensing in Singapore

  • iSTOX, a next-generation capital markets platform, entered the MAS Fintech Regulatory Sandbox on 1 May 2019.
  • Within the sandbox, iSTOX is onboarding the first batch of issuers and investors, who will participate in issuance and trading of digitised securities on iSTOX from 4Q 2019 onwards.
  • iSTOX is working towards graduating from the sandbox by early 2020 as the first fully-regulated capital markets platform to offer issuance and trading of digitised securities.
  • Partnership between iSTOX and its newly-established Legal Panel will further enhance iSTOX’s capabilities as a next-generation capital markets platform.

ICHX Tech Pte Ltd, a blockchain-based infrastructure company incubated by leading Singapore investment firm ICH Group, today announced that its next-generation capital markets platform, iSTOX, has been admitted into the Monetary Authority of Singapore (MAS)’s FinTech Regulatory Sandbox. Since 1 May 2019, iSTOX has been operating within the sandbox environment, with a view to graduate from the sandbox and transition into full operation by early 2020. After onboarding the first batch of issuers and investors, ICHX Tech anticipates the first issuance of digitised securities within the sandbox environment to take place by 4Q 2019, with the trading of these digitised securities on iSTOX to begin shortly after. iSTOX is working towards graduating from the sandbox by early 2020 as the first fully-regulated capital markets platform to allow issuers and investors to conduct the issuance and trading of digitised securities.

The MAS FinTech Regulatory Sandbox was launched to allow financial institutions and FinTech start-ups to experiment with promising financial products or services within a well-defined space and duration. The sandbox provides a supportive environment for innovative FinTech experimentation and contains the appropriate safeguards to contain the consequences of failure and maintain the overall soundness of the financial system.

iSTOX also announced the establishment of the iSTOX Legal Panel, comprising prominent law firms Allen & Gledhill LLP, Baker McKenzie Wong & Leow, and Rajah & Tann, who may be engaged to provide top-tier legal advice to assist issuers on iSTOX’s digitised security structuring and issuance processes.

iSTOX is a future-ready capital markets platform that is set to usher in a new era for capital fundraising through the use of digitised securities. The iSTOX platform presents a more flexible, inclusive and efficient platform that will greatly benefit both companies looking to raise capital and investors seeking bespoke investment opportunities. In doing so, iSTOX extends the boundaries of current capital markets and will reach out to new segments of capital market participants whose needs are not fully served by existing capital market mechanisms.

Accessibility is a major feature of the iSTOX platform, as it will connect accredited and institutional investors to investment opportunities not traditionally available outside a small, closed group of participants. The iSTOX platform can accommodate digitised securities that utilize bespoke investment structures, and these digitised securities will be tradeable on iSTOX, thereby offering liquidity to investors.

At the same time, iSTOX promotes the enterprise economy by connecting the investor ecosystem with investment opportunities, and delivering funding for cutting-edge projects. With iSTOX, any issuer, be it established companies, younger companies seeking growth capital, funds or even private asset owners may use digitised security offerings as a new mechanism to tap capital markets and receive investments for an idea or venture they believe in.

“We are delighted to have joined the MAS Regulatory FinTech Sandbox, which marks a key step toward our goal of building a future-ready regulated capital markets platform. Our focus during this period is to deploy and develop the iSTOX platform within the sandbox to better serve both issuers looking to raise capital and investors seeking bespoke investment opportunities,” said Mr Danny Toe, Chief Executive Officer of ICHX Tech. “To add to our offering, we are pleased to work with top-tier law firms to further enhance the holistic issuance experience of digitised securities for our customers.”

Mr Darius Liu, Chief Strategy Officer of ICHX Tech, said, “iSTOX is supportive of the goal to encourage more FinTech innovation in Singapore. To this end, the iSTOX platform aims to extend the boundaries of capital markets as we know them today, benefitting Singapore’s own financial services ecosystem in the process. We will continue to work with the authorities and regulators to develop an environment for financial innovation and enhance Singapore’s global standing as a dynamic, well-regulated financial centre.”

In November 2018, ICHX Tech announced that they had received key investments from Singapore Exchange (SGX) and Heliconia Capital Management for the iSTOX platform.

With the admission to the sandbox, the iSTOX platform marks a key milestone towards its aim of being regulated as a Recognised Market Operator under the Securities and Futures Act.

For more information, please visit www.iSTOX.com

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iSTOX

Opening Private Capital Markets To 21st Century Investors

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