Banking Investment News

Japan’s Tokai invests $5 mln in SGX, Temasek backed blockchain firm iSTOX

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Today, blockchain capital markets platform iSTOX said it received $5 million in funding from the Singapore unit of Japan-based Tokai Tokyo Financial Holdings. Developed and managed by blockchain firm ICHX Tech, the platform aims to provide one-stop issuance, custody and trading of digitized securities.

This is the second such investment iSTOX has received in the past few months, with a Series A funding round led by Thai investment bank Kiatnakin Phatra Financial Group.

The investment from Japan’s Tokai comes close after iSTOX completed its first issuance and secondary market listing on its platform. Currently, the company is operating under the Monetary Authority of Singapore (MAS)’s FinTech Regulatory Sandbox. The platform aims to go live in the first quarter of 2020.

“Our partnership with Tokai is an important part of our overall goal of establishing the iSTOX platform as a central pillar of the emerging ecosystem for digitized securities,” said Danny Toe, Founder and CEO of ICHX.

Based out of Singapore, iSTOX is backed by the Singapore Exchange (SGX) and state-owned Temasek’s investment arm Heliconia Capital. The platform has a strong presence in Singapore. And with investments from Thailand and Japan, it is well poised to offer blockchain-based investment solutions in Asia where the company is looking to form more partnerships.

“The world of financial services is approaching a pivotal period of change and the emergence of transformative technologies like blockchain is among the chief causes of this,” said Tateaki Ishida, President & CEO of Tokai Tokyo Financial Holdings.

Multiple Japanese organizations have their eye on digital securities. Nomura and Nomura Research have a joint venture, and two weeks ago, MUFG formed a security token consortium.

There is another firm in Singapore which is using blockchain for capital markets. Digital asset bank Sygnum recently received approval from MAS to provide asset management services in the country. The firm has joint ventures and partnerships with Switzerland’s Swisscom and securities giant Deutsche Börse.

Among other similar projects around the world, SIX Digital Exchange (SDX) has launched a prototype of its blockchain digital assets platform and distributed central securities depository (CSD).

In Germany, Boerse Stuttgart’s blockchain-based digital asset exchange platform is in production at the moment. Earlier this year, the Stock Exchange of Thailand announced plans to build a blockchain-based digital asset platform, which it plans to roll out in 2020.