Archax, the forthcoming institutional digital securities exchange based in London, has raised funds from growth-oriented blockchain investment firm Bletchley Park Asset Management, which delivers an institutional approach to investing in blockchain technologies and the surrounding ecosystem.
The operator plans to launch this year a venue for institutions and professional investors to trade in all types of digital securities, also known as security tokens, which take real-world assets and ‘tokenize’ them using blockchain technology. Its security token offering (STO), where it will tokenize and offer for sale a portion of its own equity, is scheduled for late 2019.
The company has applied to operate a multilateral trading facility (MTF) in London and is currently being considered by the UK Financial Conduct Authority, the country’s financial watchdog.
Lewis Fellas, Chief Investment Officer at Bletchley Park, commented:
“We are strong believers in the institutional adoption of blockchain technologies, and the financial markets space is a key area where they have the potential to disrupt, as well as add real value too. We are keen to invest in innovative products and teams that really understand this space, and the potential of the technology. Archax clearly fits the bill. We are pleased to have been able to make an early investment in their seed fund stage and are excited about their future potential and the investment opportunities the exchange will bring to market.”
Graham Rodford, CEO and Co-Founder of Archax, said:
“We see the tokenization of assets as the next significant step in the evolution of financial markets. As well as bringing liquidity to assets that are currently illiquid and hard to trade, blockchain technology also has the potential to revolutionize traditional liquid financial markets too – particularly by bringing efficiencies and cost savings to the post-trade space. Whilst looking for seed investment, we were keen to find partners who understand what tokenization can bring and that could add real value to the Archax business. Lewis and the team at Bletchley Park deliver exactly that.”
In April 2019, Archax chose ClearBank for its pioneering ‘Banking as a Service’ offering as the operator prepares to provide a regulated venue for institutions and professional investors to trade in digital securities. ClearBank will also ensure Archax customers the protection of funds by holding them at the Bank of England.