iSTOX, a security token platform backed by the Singapore Exchange, have managed to raise their Series A funding. iSTOX has declined to give the exact amount, but the funding was provided by the Thai banking firm, the Kiatnakin Phatra Financial Group (KKP).
iSTOX, the company itself owned by ICHX Holdings, is a digital securities brokering platform. As the world goes into a new digital era, iStox will represent the Singapore Exchange and Heliconia Capital’s step into the future.
Last May, it was admitted into the Monetary Authority of Singapore’s (MAS), FinTech Regulatory Sandbox. iSTOX’s start-up plans include trading to begin within the fourth Quarter of this year. It's goal is to be fully operational come next year.
Aphinant Klewpatinond, KKP’s Chief Executive Officer, released a statement to the public about this matter. He explained that KKP’s new investment in iSTOX would serve as a strategic foundation for the banking firm as they move into the next age of capital markets.
Klewpatinond expanded by stating that the digitalization of securities will be paramount to re-intermediating the world’s value chain. It would allow solutions unavailable to conventional capital markets. He explained that, with this collaboration, they would be able to offer more personalized services to KKP’s clients, both from an investment and fundraising perspective.
Furthermore, Klewpatinond stated that both the KKP and iSTOX would team up in a marketing education campaign and outreach initiative. All this, in a plan that will help improve the everyday man’s understanding of digitized assets and, more importantly, the benefits it can give them.
iSTOX Opening Doors
Darius Liu, KKP’s Chief Strategy Officer, explained that iSTOX has the potential to open doors to a market many investors have primarily left untouched. He cited how a lot of investors aren’t getting the desired returns from public financial markets. Many are slowly becoming interested in the private market: Things like equity for a Series B start-up, hedge funds, and corporate debt.
Liu expanded by stating that these private markets are highly fragmented and lack any form of transparency. This leads to large amounts of money shelled out to intermediaries. Liu claimed that only individuals with a very high net-worth, or alternatively very well connected, could stand to profit from this fragmented system.
iSTOX is being touted as something that gives all users a fair chance by giving them the same access and information as everyone else. While eliminating high operation costs, iSTOX is planning to bring private investments to institutional and accredited investors.
The world is slowly reaching the true digital age, and companies like iSTOX and those that support them, like MAS and KKP, will be at the front of this era. Only time will tell if this project will succeed.