Archax, the forthcoming London-based institutional digital securities exchange, today announced a partnership with Globacap, a regulated primary issuance platform for security tokens also based in London. Under this partnership, Globacap will use Archax as a secondary market for the digital securities it creates for its clients, and Archax will integrate its exchange with the Globacap platform.
Digital securities, also known as security tokens, can either be digitally native versions of traditional financial assets, such as shares, bonds and funds, or can be real-world assets tokenised using blockchain technology. This modernises and simplifies the process of raising capital by removing friction and middlemen. It can also bring liquidity to currently hard to trade assets through fractional ownership and the creation of global secondary markets that are available 24x7.
Myles Milston, CEO of Globacap, comments: “We are automating the process of raising capital by using technologies like blockchain to slash costs and simplify ongoing administration. With a high-profile client base and a growing pipeline of new prestigious issuances, we were keen to have access to a credible, institutional marketplace for secondary trading. Archax is credible throughout – from the team and advisory board behind it, to the systems and processes it is putting in place. This made them an ideal partner for us in this emerging space, and we look forward to working together.”
Globacap pioneered the use of blockchain to streamline direct equity issuance in the FCA’s regulatory sandbox. The platform is pre-configured to comply with regulations for most countries around the world, handling all the investor KYC, collecting investments, issuing the digital securities and taking care of ongoing administration, cap table management, and more.
Graham Rodford, CEO of Archax, adds: “Our aim is to create the leading institutional exchange for the trading of digital securities globally. Consequently, we are keen to work with other leading players in this space and ensure we list the leading issuances too. Globacap are clearly a pioneer in the emerging ecosystem, having been responsible for a number of successful security token offerings (STOs). We are pleased to be partnering with Globacap and look forward to working together to help further establish the institutional infrastructure that is needed.”
Archax, which plans to launch later this year, is focused on providing a venue for institutions and professional investors to trade in all types of digital securities globally. Its application to operate a multilateral trading facility (MTF) in London is currently being considered by the FCA. Archax will also be doing its own STO where it will tokenise and offer for sale a portion of its own equity.