InvestaX, a Singapore-headquartered online investment and trading platform for Digital Securities (DSO) and Security Tokens (STO), launches its exchange in the Monetary Authority of Singapore‘s (MAS) sandbox.
The company said that its entry in the sandbox provides a one-stop shop solution for the issuance and trading of digital securities, for global products and investors.
InvestaX holds a Capital Markets Services license (CMSL) to deal in securities by MAS which allows the company to facilitate the primary offer and issuance of securities and act as an intermediary between issuers and investors.
The company also holds a regulatory exemption under the Financial Advisers Act which allows it to provide advice on units in collective investment schemes.
InvestaX operates an organised market allowing investors to purchase securities from, and sell securities to, other investors.
At present, the firm is not regulated for this activity. Instead, it operates this organised market in accordance with the MAS regulatory sandbox scheme.
The sandbox is presently scheduled to continue until 14th March 2022 and may be subject to extension.
While in the sandbox, InvestaX is exempted from compliance with the regulatory requirements of operating an organised market under the Securities and Futures Act (SFA).
InvestaX is also working with DeFi platforms like IX Swap to bring new liquidity solutions to the digital securities marketplace, which is essential to fuel the growth in trading volumes as the industry expands.
In September 2020, InvestaX was awarded MAS’ Proof-of-Concept (POC) grant, which provides funding support for experimentation, development, and dissemination of nascent innovative technologies in the financial services sector.
“Cryptocurrencies (digital currencies) and security tokens (digital securities) belong together. They are both native digital assets interacting instantaneously on immutable ledgers, creating speed and efficiency as well as trust and transparency never seen before in investment transactions. This connectivity is ushering in the next wave of innovation and expansion of the digital assets industry as well as new innovative investment products never seen before,”
said Julian Kwan, CEO of InvestaX.
Featured image credits: Edited from Unsplash