TOKYO: Tokai Tokyo Global Investments Pte. Ltd., a subsidiary of Tokai Tokyo Financial Holdings, entered into an agreement to invest $5.0 million in Singapore’s STO exchange operator ICHX Tech Pte Ltd.
ICHX operates a Security Token Offering exchange in Singapore and it is headquartered in Singapore, and operated by its CEO, Mr. Danny Toe.
Under management plan “New Age’s Flag Bearer 5”, Tokai Tokyo is working to strengthen management foundation to evolve into an advanced “integrated financial group”. The Group recognizes that one of the important management issues is to expand products and services that meet customer needs by actively introducing advanced technologies such as FinTech and digitalization into financial services.
ST transactions utilizing blockchain technology, which has evolved greatly in recent years, are expected to bring significant benefits to issuers and investors of securities such as shortened settlement period of securities transactions, increased liquidity thanks to the accessibility to the market 24 hours a day, 365 days a year, and significantly reduced costs.
Based on this investment, Tokai Tokyo Financial Group, will consider providing advanced services together with ICHX as an important partner in Japan. Possible services would include intermediary/brokerage services for Japanese issuers/investors in conjunction with the government authorized STO exchange, the first of its kind in Asia.
ICHX established an STO exchange platform called iSTOX in Singapore and is currently operating within a regulatory sandbox promoted and supervised by the Monetary Authority of Singapore (MAS). In February 2020, ICHX is supposed to acquire a Recognized Market Operator (RMO) license from MAS., and it intends to expand its business targeting the entire Asian capital market.