Singapore Exchange-backed security token platform admitted into MAS’ fintech regulatory sandbox

By Staff Writer

The security token offerings (STO) platform iSTOX has been admitted into the Monetary Authority of Singapore (MAS)’s FinTech Regulatory Sandbox, the company announced on Friday (May 27).

iSTOX, which is partially backed by the city-state’s main bourse Singapore Exchange as well as the investment firm Temasek (see here), incorporates blockchain and smart contract to deal in fiat currencies transactions for the sale of tokenized securities.

It will not list initial coin offering (ICO) tokens or popular cryptocurrencies like bitcoin, ether, and XRP.

The platform, which has been operating within the sandbox environment since May 1, is hoping to come out of the sandbox as a fully-regulated capital markets platform by 2020.

Companies can raise capital through the issuance of digitized (tokenized) securities on iSTOX. The platform is currently onboarding its first batch of issuers and investors, and expects the first issuance of digitized securities within the sandbox environment to take place by the fourth quarter this year.

Danny Toe, chief executive officer of ICHX Tech, which owns the platform, said that joining the MAS sandbox is a key step towards its goal of building a “future-ready regulated capital markets platform.”

iSTOX has also formed a legal panel that includes the Allen & Gledhill LLP, Baker McKenzie Wong & Leow, and Rajah & Tann. They will serve as legal advisers to help issuers on iSTOX’s digitized security structure and processes.

 

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