Digital securities platform iSTOX closes $50 million Series A to make private equity accessible to more investors – TechCrunch

Oi Yee Choo, chief commercial officer of digital securities platform iSTOX

Oi Yee Choo, chief commercial officer of digital securities platform iSTOX

iSTOX, A digital securities platform that seeks to make private equity investment more accessible, has included new investors from Japan in its Series A round, raising its total to $ 50 million. Its two new backers are Japan’s state-owned Development Bank and JIC Venture Growth Investments, the venture capital arm of Japan Investment Corporation, a state-backed investment fund.

Other participants include Jurok Bank and Mobile Internet Capital, as well as Singapore Exchange, Tokai Tokyo Financial Holdings and Hanwa Asset Management to back investors.

Founded in 2017 and owned by blockchain infrastructure firm ICHX, iSTOX aims to open up private capital opportunities including startups, hedge funds and private loans, typically limited to a small group of highly institutionalized individuals to more constitutional and accredited investors. Huh. . (It also serves accredited investors outside Singapore, as long as they meet the country’s standards Holding an equal amount in property and income.) Allows users of iSTOX to invest as much as $ 100 (approximately $ 75.50 USD) and is able to keep fees low and hold digital securities using blockchain technology for smart contracts, issuing Makes the process more effective and less expensive. .

iSTOX series was a round First announced in September 2019, When the company said that it had raised an undisclosed amount from Thai investment bank Kiatankin Futra Financial Group, participating in the Monetary Authority of Singapore (MAT) Fintech Regulatory Sandbox. The Singapore government is particularly supportive of blockchain technology, which has taken initiatives to commercialize its use in fintech, data security, logistics and other fields.

iSTOX completed the sandbox program in February 2020, and was approved by MAS for the issuance, custody and trading of digitized securities. The new funding will be used for geographic expansion, including China, where it already has an agreement in Chongqing city and Europe and Australia, where it is currently working on ongoing deals. iSTOX also plans to add new investment products, including private issues that investors can subscribe to in a “bite-sized portion”.

In a press statement, iSTOX Chief Commercial Officer Oi Yi Chu said, “Capital markets are changing rapidly due to advances in technology. Regulatory MAS and our institutional investors have been visionary and progressive, and they wholeheartedly support this change. “

The company is one of several Asia-based fintech platforms that seek to democratize the investment process. For retail investors, such as apps are Bibbit, Cife, Sashaway, and Catch Financial’s investment products.

Since iSTOX works with accredited and institutional investors, however, its most direct competitors include Recently launched DBS Digital Exchange, Which is also located in Singapore. The advantage of iSTOX is that it offers more types of assets. Right now, it facilitates the issuance of funds and bonds, but this year, it will start issuing private equity and structured products. The company’s securities are also fully digitized, meaning that they are built on the blockchain, instead they are released after being recorded on the blockchain, meaning that iSTOX has a faster settlement time. Is able to offer.