Security Token Platform iSTOX Graduates from Singapore’s Regulatory Sandbox
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Security Token Platform iSTOX Graduates from Singapore’s Regulatory Sandbox

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On February 3rd, 2020, iSTOX announced that it has received the regulatory green light to conduct full-scale security token trading in Singapore. The platform entered the Monetary Authority of Singapore’s FinTech sandbox back in May of 2019. Since that time, iSTOX has received a number of notable backers and even completed a ‘first-ever’ in the security token industry.


iSTOX Completes MAS FinTech Sandbox Explained

Based in Singapore, iSTOX is an end-to-end digital securities platform. In November of 2019, iSTOX completed what it refers to as the world’s first issuance, custody, and trading of a blockchain-based digital security on a single platform.

Starting in May of 2019, the platform operated out of the Monetary Authority of Singapore’s (MAS’s) regulatory sandbox. The mechanism was designed to allow FinTech companies to test their product in a live yet limited and regulated environment.

Now, announced today, iSTOX has officially graduated from the regulatory sandbox. According to a tweet,

iSTOX has officially emerged from the MAS Fintech Regulatory Sandbox! This makes iSTOX the first capital markets platform featuring one-stop issuance, custody and trading of digitised securities to be licensed by a major regulator.

iSTOX is operated by ICHX Tech. The group says its platform will bring a significant number of benefits when compared to the existing infrastructure of the capital markets industry.

Who has Backed Security Token Platform iSTOX?

Digital securities, which are also referred to as security tokens, allow for the reduction of costly middlemen, nearly instantaneous settlement cycles, and a global market easily accessible to new pools of investors. Since the securities are powered by distributed ledger technology, security token trading enables full-time operations — 24/7/365 — regardless of holidays or day-time hours.

A number of companies have recognized not just the benefits of security tokens, but the potential in iSTOX. The platform has received several high-profile backers throughout the region of Asia.

Back in late 2018, both Heliconia Capital Management and Singapore Exchange (SGX) invested an undisclosed amount in iSTOX. In November of 2019, Tokai Tokyo Holdings invested $4.58 million for a 4.8% stake. Just two months later, iSTOX announced a $5 million investment from South Korea-based asset management firm, Hanwha.

Securities, whether in traditional or digital form, must adhere to strict regulatory requirements in the majority of jurisdictions throughout the world. iSTOX boasts strength here as well, since ICHX Tech features two former MAS regulators as board members.

What do you think about iSTOX graduating from the Monetary Authority of Singapore’s regulatory sandbox? We want to know what you think in the comments section below.


Image courtesy of AsiaOne.

February 3, 2020

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Tim Fries Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird's US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firms specializing in sensing, protection and control solutions (IoT).