HighCastle, a share registrar and investment marketplace, has entered into a strategic partnership with Archax to increase the secondary market liquidity of digital securities issued by it, the company announced on Wednesday.
HighCastle offers varied services with digital securities, including prime issuance, registry, and settlement distribution network known as Primenet. The blockchain network is based on a permissioned consensus mechanism that makes it secure and suitable for investment firms, brokers, and exchanges.
“At HighCastle we provide companies and funds with a full technical and legal framework for compliant digital offering, issuance, distribution, and transfers of securities on a distributed ledger and the opportunity to maintain a blockchain-based share register,” Philip Millar, executive director at HighCastle, explained.
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“By integrating with the Archax exchange, HighCastle will provide our issuers and their shareholders with the additional channel of trading and liquidity,” explains Philip Millar, Executive Director at HighCastle.
An attempt to tokenize traditional assets
Based in London, Archax is an upcoming digital asset exchange focused on institutional clients. It is planning to tokenize all types of assets, including equities of private companies, debts, properties, arts, and funds.
Earlier this year, Finance Magnates reported that the company is planning to launch a digital asset custody service as well.
“The tokenization of all asset classes globally will not only facilitate bringing liquidity to currently illiquid and hard to trade assets, but ultimately will disrupt all traditional financial markets too. Blockchain brings huge benefits in terms of the improved efficiencies, and the difference it will make to the post-trade process will be truly transformational,” Graham Rodford, CEO of Archax, added. “HighCastle, with its focus on the issuance, distribution, and management of digital securities, is perfectly placed to bring the benefits of blockchain to SME firms and funds, and we look forward to working with them as this exciting tokenization ecosystem gathers momentum.”