BlockEx, a “digital asset exchange and technology provider for institutional-grade financial market participants”, has announced that its new digital bond service has been selected for a place in the Financial Conduct Authority’s sandbox.
BlockEx is a company that provides three services. The first is an exchange platform for blockchain-based digital assets. According to its website, the platform “manages the entire lifecycle of blockchain based digital assets, including origination, issuance, exchange, settlement and redemption.” It includes brokerage software and a tool for creating a cryptocurrency.
The second is BlockEx Markets, which displays reviewed and approved ICO projects for the benefit of potential investors. The investors benefit from standardised and reliable information, and the ICOs themselves benefit from the larger buyer base. Holders of the BlockEx’s Digital Asset Exchange Token (DAXT) have access to the pre-sales of these projects.
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The new digital bond service uses blockchain technology to manage the entire bond issuance life-cycle. A bond is a loan given to a company by an investor. The company holds the money for a pre-defined period of time before paying it back with interest. BlockEx is attempting to standardise the process with smart contracts – it has been working on this since May 2017.
The FCA is the UK’s financial watchdog. It has been running its sandbox since June 2016. Its latest induction drive is called ‘cohort four’. 69 companies applied for the six-month programme, with 40 percent of them using blockchain in some way, according to Mortgage Finance Gazette. 29 were approved for ‘cohort 4’, which is what the FCA is calling the entrance periods. A sandbox is a kind of regulatory quarantine, and companies hope that their time in the sandbox will end in their new services being officially licensed.
Yesterday we reported on another blockchain company, Globacap, being accepted by the FCA to test the sale sells equity securities via a blockchain.