SGX and Temasek's Heliconia invest in capital markets platform iSTOX

The platform connects investors with opportunities through Security Token Offerings (STOs).

The Singapore Exchange (SGX) and Temasek’s wholly-owned subsidiary Heliconia Capital Management have invested into capital markets platform iSTOX which aims to provide fast time-to-issuance and transparency for users, an announcement revealed. 

The platform was created by blockchain-based infrastructure company ICHX Tech which is incubated by investment firm ICH Group and is working towards being regulated and licensed by the Monetary Authority of Singapore (MAS) as a recognised market operator, according to the statement.

Following the investments, ICHX Tech has also appointed SGX executive vice president and head of equities and fixed income Chew Sutat and MAS assistant managing director Chua Kim Leng to its board of directors.

“As capital markets evolve, companies will seek new funding avenues that suit their different stages of growth and business needs,” Sutat noted. “To advance Singapore’s position as a world-class financial hub, we need innovative solutions that push boundaries and set new benchmarks.”

The iSTOX platform will go live once the requisite MAS licenses have been obtained.

Heliconia Capital Management’s CEO Derek Lau also noted that through iSTOX, small and medium-sized enterprises (SMEs) are now provided with an alternative to capital raising and market liquidity as the platform ‘moves beyond traditional securities exchanges’.

iSTOX will be well positioned at the forefront of a new era for capital fundraising through the use of security token offerings (STOs), the statement highlighted.

“STOs are financial securities which offer flexible issuance structures that can be backed by a variety of underlying assets such as company shares, debt, real assets or future profits and revenue of an enterprise or project,” ICHX Tech explained.

According to the announcement, STOs will allow for fractional ownership of assets which potentially enables issuers to build a broader and more diverse investor base. Through iSTOX, investors can also gain STO access to liquidity through a secondary trading platform.

“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 funding,” ICHX Tech’s CEO Danny Toe added.

Whilst iSTOX incorporates blockchain and smart contract technology as part of its structure, ICHX Tech noted that it is not a cryptocurrency exchange as all issuances will be bought and sold using fiat currency.