Fintech company Globacap has announced the launch of a fully regulated platform for digital security offering and administration in the United Kingdom.
According to the company, this is the first such exchange in the country working under the regulatory guidelines of the Financial Conduct Authority (FCA).
Globacap has been operating under the FCA’s regulatory sandbox since last year and worked hand-in-hand with the market watchdog before receiving full approval for the blockchain-based platform.
Commenting on the development, Myles Milston, CEO of Globacap, said: “The Sandbox programme has been a great experience, enabling us to come to market with a new application of an emerging technology in a controlled but quicker manner. From our groundbreaking proof of concept in August last year, to our product now coming to market, the support from the Innovate Team at the FCA was instrumental in the success of this journey.”
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Bringing blockchain to finance
The London-based firm is tokenizing digital securities, including bonds, shares, and funds. The company’s offerings have three products – capital rising, capital administration, and custody – any of which can be used independently.
In the announcement, the company explained that its technology creates a digital token that forms the legal security and the in-built processes facilitate further transactions by automatically fulfilling the legal requirements of a transfer of ownership — the platform record all the transactional details on a distributed ledger.
In August 2018, the company digitized its own shares while earlier this year it did the same for two United Kingdom-based companies and also offered regulated arranger and custodian services in each capital raise.
Tokenization of securities is gaining steam in the fintech world lately. Many innovative startups are working to blend the age-old finance industry with merely ten-year-old blockchain technology. Giants like Goldman Sachs are also betting on tokenization as the bank is considering to develop its own digital token.