Lykke cryptocurrency exchange announced on November 5 its collaboration with Nxchange, a fully regulated securities exchange platform, to create Europe’s first fully regulated tokenized securities exchange.
A Platform that Enable Investors to Access New Assets and Companies to Raise Capital Directly
Swiss Lykke’s joint venture with Nxchange aims to develop an ecosystem where companies will offer their securities to a broader investor base, by utilizing the benefits of blockchain technology. Nxchange, the first fully regulated Stock Exchange as a Service, will contribute with its expertise in regulatory compliance and governance regarding listing requirements to host safe and regulated trading.
Similarly, Lykke’s contribution includes investment capital, its know-how in blockchain technology, its crypto asset trading infrastructure, and its financial engineering expertise to the partnership, which makes Lykke a key equity shareholder in Nxchange.
Additionally, through the Lykke Nxchange wallet investors will gain instant access to trade numerous tokenized assets that were previously inaccessible. By tokenizing assets and securities, such as equities, bonds, loans, investment products, the new venture will optimize costly and time-consuming procedures, and investors will conduct trading with convenience.
The blockchain-based Nxchange will allow companies to issue their securities from their web environment and raise capital through their own community, while smart contracts will power the platform’s functionalities and guarantee the investors rights with transparency.
Richard Olsen, the founder of Lykke, said:
“This is a historic day – not only for Lykke and Nxchange as companies – but for our broader shared vision that is targeted at a more equitable and democratic financial world. The increasing acceptance of digital assets and blockchain infrastructure as the technology of the future correctly comes with a greater emphasis on regulation and compliance. This partnership envisages to satisfy all these things while still bringing all the benefits of transformative technology to any individual who wishes to access or exchange anything of value.”
Marleen Evertsz, CEO and founder of Nxchange, said:
“We believe that the time has come for a more modern form of capital market transactions: efficient, real-time, 24/7, transparent, and supported by compliance procedures that assure maximum security. We are delighted to partner with Lykke and to join forces in building the Next Generation Stock Exchange.”
Tokenized Securities: A Trillion-Dollar Opportunity
Nxchange was incorporated in the Netherlands in 2016, as a new generation stock exchange for direct trading in securities between companies and investors. It has been licensed as a regulated market and Multilateral Trading Facility (MTF) by the Dutch Ministry of Finance and competes openly against traditional financial markets like Euronext.
It has previously partnered with ABN Amro clearing bank for the development of a blockchain-operated escrow system, on which transactions are settled real-time against fiat currencies, while these remain under the bank’s custody. Tokenized assets are increasingly trending in the cryptosphere, in what could soon turn into a trillion-dollar market. Therefore, the Lykke – Nxchange partnership takes the right steps to claim its share in this niche market.