Nivaura Blockchain Project Secures $20 Million USD Led By London Stock Exchange Group (LSEG)
London Stock Exchange Leads $20 Million USD Funding Round For Nivaura
A blockchain startup focused on the capital markets called Nivaura has recently been able to raise $20 million USD during its funding round, which was led by the London Stock Exchange Group (LSEG).
Other relevant investors from the round were Linklaters and Orrick (law firms), Santander InnoVentures, Transamerica Ventures, Aegon, Digital Currency Group, MiddleGame Ventures and the former head of global markets at HSBC, Spencer Lake.
The first closed funding round that the company ever had was in October 2017 and another one in January 2018. While values were not disclosed for the first two ones, it was affirmed that the values of this last fundraising event were far bigger than the other two.
According to the company, the money will be used in order to hire more people across all areas in the company and to expand the services into the U. S. and Asian markets, as well as to invest in research and development.
Nivaura’s Big Plan
Nivaura’s main goal as a blockchain platform is to be able to automate the entire life cycle of different kinds of financial instruments, which would include bonds, equities, and derivatives as well. The company wants to do it by using the public blockchain to register these assets and let them untouchable by humans.
The CEO of Nivaura, Avtar Sehra, has affirmed that the platform can be used as a wide solution to many problems which are often faced by companies in the market today. Also, he added that many financial institutions are hungry for real innovation that goes “beyond buzzwords” and they are ready to pay for them, which is exactly what the company is offering to its clients.
According to the startup, it offers a modular solution which can be used to automate the process and optimize the process. By tokenizing all sorts of assets, the company expects to cut the processing time in at least 80%, which would have a huge impact on the industry. Also, it would reduce prices considerably, which would benefit the exchanges and the clients alike.
Ties Between Nivaura And The London Stock Exchange Will Be Stronger Now
After the round, the CEO of the London Stock Exchange, Nikhil Rathi, has entered the board of Nivaura. He affirmed that the investment strengthens the relationship between the two companies and will help the clients of both companies to have better access to the market.
Now, it is certain that the ties of the two companies will remain stronger than they ever were. Before the investment, the exchange operator had already made a partnership with the blockchain startup in order to tokenize securities before, which was a part of the U. K. Financial Conduct Authority (FCA).
The partnership has already given some experience to Nivaura as the company had to work tokenizing the assets while being regulated by many directives and laws from the U. K. and the European Union.
According to Sehra, the company has several engineers and technologists that are helping to develop the product properly and they have a deep understanding of the regulation. “What we are doing is not magical”, he affirmed, while saying that the company works within the existing regulation instead of trying to change it, which would be a lot more effort.
Sehra affirms that it is a complex effort to work with the Central Securities Depositories Regulation (CDSR) and the European Union’s Markets in Financial Instruments Directive (MiFID), but the company needs to create financial instruments which can be used by any company.
Therefore, the main goal was always to create a system which could be compliant with the laws so that no matter what the technology the companies used to access the system, they would be compliant.
At the moment, the company is working only with public blockchains, first Bitcoin (BTC) and then Ethereum (ETH) was used by the company. However, it seems like Nivaura is open to let the users have all the control. According to Sehra, the participants to do not need to use a single clearing house or a single blockchain, even.
They will provide the tools for the clients to determine on their own how they want to handle the situation and if they want blockchain-based solutions or not.
The company is preparing for the transformation of the financial industry but they know that they have to be flexible in order to attract clients. Everyone wants not a standard but a personalized solution and that is what the company is trying to offer.