On October 16th 2019, HighCastle announced a partnership with Archax. The deal has the aim of bringing higher levels of liquidity to the developing digital securities ecosystem.
The Partnership Between HighCastle and Archax Explained
UK-based HighCastle is a blockchain-based share registrar and investment marketplace. They’ve built their own private blockchain— PrimeNet— which the company defines as a “secure permissioned distributed ledger built in accordance with the capital markets industry’s standards”.
With added liquidity in mind, HighCastle has partnered with developing digital securities exchange Archax. Based in London, Archax has its sights on institutional-grade capacities to bridge the gap between the current capital markets industry and Distributed Ledger Technology (DLT).
According to HighCastle CEO Philip Millar,
“At HighCastle we provide companies and funds with a full technical and legal framework for compliant digital offering, issuance, distribution and transfers of securities on a distributed ledger and the opportunity to maintain a blockchain-based share register. By integrating with the Archax exchange, HighCastle will provide our issuers and their shareholders with the additional channel of trading and liquidity.”
Initially, Archax will focus on the tokenization of illiquid asset types, to include private equity, debt, real estate, fine art, and investment funds. The exchange’s larger vision involves the tokenization of all asset types, however.
Graham Rodford, Archax CEO, says,
“The tokenisation of all asset classes globally will not only facilitate bringing liquidity to currently illiquid and hard to trade assets, but ultimately will disrupt all traditional financial markets too. Blockchain brings huge benefits in terms of the improved efficiencies and the difference it will make to the post-trade process will be truly transformational. HighCastle, with its focus on the issuance, distribution and management of digital securities, is perfectly placed to bring the benefits of blockchain to SME firms and funds, and we look forward to working with them as this exciting tokenisation ecosystem gathers momentum.”
Archax has also formed a partnership with Smartlands, allowing for Smartlands-issued security tokens to be tradeable on the exchange.
In addition, Bletchley Park and SPiCE VC have made notable investments in Archax. Tokenized investment fund SPiCE VC constitutes the first security token to compliantly undergo a peer-to-peer transfer on a public blockchain.
What do you think about HighCastle teaming up with Archax? Will the UK eventually develop into a hotbed of digital securities issuance and trading? We want to know your thoughts in the comments section below.
Image courtesy of Archax.