SGX & Heliconia invest in Blockchain-based capital markets platform iSTOX

ICHX Tech, a blockchain-based infrastructure company incubated by leading Singapore investment firm ICH Group, announced key investments from Singapore Exchange (SGX) and Heliconia Capital Management, a wholly-owned subsidiary of Temasek Holdings, for its new capital markets platform iSTOX. The iSTOX platform is designed to provide fast time-to-issuance and a high level of transparency.

ICHX Tech is working towards being regulated and licensed by the MAS as a Recognised Market Operator. The iSTOX platform will go live once the requisite MAS licenses have been obtained.

As a next-generation capital markets platform, iSTOX will be well-positioned at the forefront of a new era for capital fundraising through the use of Security Token Offerings (STOs). It will also give investors in STOs access to liquidity via a secondary trading platform.

"iSTOX presents a more flexible, inclusive and efficient platform that we believe will greatly benefit both companies looking to raise capital and investors seeking bespoke investment opportunities," said Danny Toe, Chief Executive Officer of ICHX Tech. "In this way, we aim to offer a future-ready platform for capital fundraising which offers substantial benefits to complement existing capital market mechanisms."

"The iSTOX platform was developed in anticipation of how the capital markets sector will evolve in the future. The demands of the next generation of investors and issuers will be different, and this calls for a shift in how we should approach the process of capital funding. Utilizing blockchain technology, iSTOX is able to offer STOs and address needs of both investors and issuers which are not adequately met today. In essence, STOs extend the boundaries of capital markets as we know them today, and this is why we believe STOs represent the future of capital fundraising”, Toe added.

While iSTOX incorporates blockchain and smart contract technology as part of the platform infrastructure, it is not a cryptocurrency exchange as all issuances will be bought and sold using fiat currency.

Chew Sutat, Executive Vice President and Head of Equities & Fixed Income, SGX, said, "To advance Singapore’s position as a world-class financial hub, we need innovative solutions that push boundaries and set new benchmarks. We believe this new platform by iSTOX will add to the vibrancy of Singapore’s capital market ecosystem, providing more options for issuers and investors alike."

"We hope this platform can extend the capabilities of Singapore’s current capital markets. More interestingly, we now have the chance to provide SMEs the alternative to capital raising and market liquidity by moving beyond traditional securities exchanges", expressed Derek Lau, Chief Executive Officer, Heliconia Capital Management.

In the same context, Assistant Managing Director at MAS, Chua Kim Leng,  said that “A blockchain-based platform that is well regulated and supervised not only enhances efficiency and creates new investment and fundraising opportunities, but also provides users with greater assurance and confidence in using the platform."