- The first fully FCA-regulated exchange has been launched by Globacap in the UK.
- This exchange will offer capital rising, capital administration, and custody as their products.
Globacap is a fintech company based out of the United Kingdom, and they have just made some history with the Financial Conduct Authority (FCA). According to reports from The Block and Finance Magnates, Globacap has decided to launch their own platform for digital security offering and administration in the United Kingdom. Based on press releases from the company, this this the first exchange to follow the regulatory guidelines of the FCA within the UK.
Even since last year, Globacap was working underneath a regulatory sandbox established by the FCA, working with the watchdog before their blockchain-based platform was ultimately approved.
Speaking about the development, CEO Myles Milston of Globacap said,
“The Sandbox programme has been a great experience, enabling us to come to market with a new application of an emerging technology in a controlled but quicker manner. From our groundbreaking proof of concept in August last year, to our product now coming to market, the support from the Innovate Team at the FCA was instrumental in the success of this journey.”
Digital securities like bonds, shares, and funds are part of this tokenization. Right now, the company is offering three products that can be used independently, including capital rising, capital administration, and custody. The company explained that a digital token is created by their technology, and the legal requirements of switching ownership is automatically completed. All of the data from these transactions are then logged on a digital ledger.
In August last year, the company used their technology to digitize their own shares, and it provided the same service for two other companies in the UK this year. To raise capital, it offered both regulated arranger and custodial services.
The fintech industry is gaining more momentum behind tokenizing securities, and there are many startups that are looking to combine the functions of the traditional financial industry with youthful blockchain technology. Big names like Goldman Sachs are even supporting tokenization, considering that they may be launching their own cryptocurrency soon.