Forthcoming institutional digital asset exchange operator Archax is set to provide the secondary market for the security tokens issued on the Globacap platform.
Globacap, a primary issuance platform for digital securities that recently became authorised and regulated by the Financial Conduct Authority (FCA), confirmed that it will use Archax as a secondary market for the security tokens it creates for its clients.
“We are automating the process of raising capital by using technologies like blockchain to slash costs and simplify ongoing administration. With a high-profile client base and a growing pipeline of new prestigious issuances, we were keen to have access to a credible, institutional marketplace for secondary trading,” said Myles Milston, CEO of Globacap.
“Archax is credible throughout – from the team and advisory board behind it, to the systems and processes it is putting in place. This made them an ideal partner for us in this emerging space, and we look forward to working together.”
Digital securities are considered to be digital versions of traditional assets such as stocks, bonds and funds, or real-world assets tokenised using blockchain technology. Globacap added that this concept simplifies the process of raising capital, and can bring liquidity to usually illiquid assets through the creation of global secondary markets that are open 24/7.
“Our aim is to create the leading institutional exchange for the trading of digital securities globally. Consequently, we are keen to work with other leading players in this space and ensure we list the leading issuances too. Globacap are clearly a pioneer in the emerging ecosystem, having been responsible for a number of successful security token offerings,” Graham Rodford, CEO of Archax, commented.
Archax is due to launch later this year, with its license application to operate as a multilateral trading facility (MTF) currently being considered by the FCA. Its aim is to become an institutional-grade venue for trading in digital securities globally.