Nivaura Capital Markets Platform Works With Fineqia Ltd for Crypto Asset-Backed Bonds Issuance
Fineqia, a service platform that supports administration of equity, security issuances and debt, announced today that its subsidiary Fineqia Ltd has managed to partner with Nivaura in order to start using its white label capital markets platform in order to carry out an administration and a completely automated tokenized issuance of bond, cleared and registered on the public Ethereum blockchain to carry out its test for distributing the crypto asset-backed bonds.
As part of its acceptance into the United Kingdom Sandbox Regulatory Program of Financial Conduct Authority’s (FCA), this was announced back in 2018 which was Fineqia Ltd main test.
Fineqia Ltd was among the 29 firms which were accepted from the 69 applicants that met the Financial Conduct Authority sandbox eligibility criteria. The test has been set to take place in Q1 of 2019 where the results will also be attained in the first quarter.
This will make it possible for the cryptocurrencies owners like ethereum and bitcoin to request for fiat funds through crypto asset-backed bonds issuance. This product has managed to get the appeal from crypto assets institutional owners like exchanges, funds, and miners who are interested in liquidity but are not keen on selling cryptocurrencies.
The partnership between Fineqia and Nivaura will create room for owners of such institutional asset to provide the exchangeable fiat denominated bonds to investors for coupons and fixed durations.
Bundeep Singh Rangar, Fineqia CEO said,
“The advanced technology of Nivaura will enable lifecycle efficiency of financial transaction and that is the reason why we have decided to invest in the company from late last year. It provides Fineqia platform with an easy transaction management workflow that has seamless blockchain clearing solution and asset registration. ”
The Role Of Fineqia Ltd
Fineqia together with Allen & Overy, a London based international law firm and Digital Currency Group a New York-based company had invested in Nivaura in Jan 2018. Fineqia Ltd will set up a complete administration platform and automated bond issuance that utilizes Nivaura technology. This will make it possible to manage the end-to-end instrument lifecycle at a relatively lower cost when compared to the already present channels that ensure complete compliance with the right custody and arranging regulations. The providers will be in a position to administer structure and execute the legally enforceable bond contracts with the use of traditional clearing infrastructure of the public blockchain. Fineqia Ltd is capable of enabling asset-backed bonds issuance by use of the clearing infrastructure and traditional depository. However, the same Nivaura technology will be required.
Nivaura refers to a United Kingdom fintech company which was founded back in July 2016. It is currently coming up with a new way for administration and automated issuance of the financial instruments under the United Kingdom Financial Conduct Authority oversight.
Nivaura’s technology important element is the Legal Markup Language that will make it possible for the standard legal contracts conversion into formats that are machine-readable.
Fineqia offers the United Kingdom associated services and regulated platform to administer and support equity and debt security issuances like corporate mini-bonds.