Archax, a forthcoming institutional digital securities exchange based in London, has chosen 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.
The tokenisation process of taking real-world assets – such as equity, revenue, debt, property and art – and tokenise them using blockchain technology as Security Token Offerings (STOs), is an efficient and frictionless alternative to the traditional method of handling financial assets.
This new method may also bring liquidity through the creation of new secondary markets to illiquid and hard to trade assets, which has the potential to revolutionise the way traditional financial assets classes are handled and traded.
Using ClearBank’s ‘Banking as a Service’ offering, Archax customers will gain access a wide range of API-based services, including seamless access to real-time payments services across BACS and CHAPS and 24x7x365 Faster Payments. ClearBank will also ensure Archax customers the protection of funds by holding them at the Bank of England.
Matthew Pollard, CFO at Archax, commented: “We were looking for an institutional banking partner that would be able to scale with us as a business and handle the large size of transactions that institutional financial market exchanges need. ClearBank are clearly of that calibre and can offer us highly scalable real-time payments powered by their industry leading, technology architecture.”
“As a disrupter in the financial markets space, we wanted a partner who would embrace a non-traditional and innovative business, and one that was willing to invest the time and effort needed to understand our business in order to move ahead quickly with our on-boarding and deployment.”
Charles McManus, CEO of ClearBank, said: “As a likeminded, innovative disruptor to traditional financial services, we are thrilled to have been selected by Archax. We are looking forward to working together to help bring the Archax product to market by extending access to the UK payment schemes in a secure, scalable, reliable and efficient way”.
Archax has built its institutional-grade exchange for trading asset-backed tokens primarily with blockchain technology. The company developed its security token exchange in partnership with Spice Venture Capital, Alphabit, Custom House, Cryptonomy, Tokeny, Securitize, MAMA, and now Quod Financial. The exchange launched in mid-2018.