Lykke, a leading Swiss blockchain-based exchange announced partnership with Nxchange, a fully regulated and Regulated Market / Multilateral Trading Facility-licensed Dutch securities exchange platform to launch a fully regulated tokenized securities exchange in Europe.
Lykke will become an equity shareholder in Nxchange in return for contributing investment capital, blockchain technology, crypto asset trading infrastructure and financial engineering expertise to the partnership.
Nxchange will bring the regulatory expertise in compliance and governance around the listing requirements to facilitate safe and regulated trading. This will make it instantly easier for any company to offer their securities to a much wider investor market while simultaneously granting investors access to a far greater and more diverse variety of financial assets. The proprietary Lykke Nxchange wallet will provide the storage vehicle through which users will be enabled to access and trade their digital assets on the exchange from anywhere in the world, whenever they wish.
New blockchain technology and smart contracts used in the crypto markets becomes vastly cheaper, quicker, more accessible and more secure compared to traditional methods of exchange such as the incumbent stock exchanges and trading platforms provide. By the use of a new infrastructure to handle transactions between two parties, investors will become fully empowered to take control of their financial strategy.
This partnership will see the potential for any asset or security – equities, bonds, loans, investment products, etc. – to be tokenised and traded on the blockchain infrastructure all within an MTF regulated and compliant environment. This will provide all on-boarded users with the peace of mind and trust required to invest in previously inaccessible assets, complete with embedded smart contracts to guarantee the rights of all users (e.g. dividends, asset ownership, voting rights, etc.) all within a securely regulated environment.
Nxchange has recently announced their collaboration with large institutional partner ABN Amro clearing bank in developing the first blockchain bank account where transactions can be settled real- time against fiat currencies while these are held in the safe custody of ABN Amro clearing bank.
Richard Olsen, founder of Lykke and of globally renowned futures commission merchant OANDA, says “This is a historic day – not only for Lykke and Nxchange as companies – but for our broader shared vision that is targeted at a more equitable and democratic financial world. The increasing acceptance of digital assets and blockchain infrastructure as the technology of the future correctly comes with a greater emphasis on regulation and compliance. This partnership envisages to satisfy all these things while still bringing all the benefits of transformative technology to any individual who wishes to access or exchange anything of value.”
Marleen Evertsz, CEO and founder of Nxchange says: “We believe that the time has come for a more modern form of capital market transactions: efficient, real-time, 24/7, transparent, and supported by compliance procedures that assure maximum security. We are delighted to partner with Lykke and to join forces in building the Next Generation Stock Exchange.