The crypto world has always been a supporter of strategic partnerships where established industries from the crypto space lend their support to the potentially-strong new ventures. One such collaboration has been announced by the London-based share registrar and investment platform, HighCastle, with Archax, the upcoming institutional-grade exchange dealing in the trade of tokenized assets.
Based on the latest piece of information, the team-up between the two blockchain-oriented platforms will play a crucial role in giving a boost to the secondary market liquidity of the virtual assets and securities offered by HighCastle’s prestigious solution- the PrimeNet. PrimeNet is the well-known acronym for Prime Issuance, Registry, and Settlement Distributed Network.
The PrimeNet follows a pedagogy which lies in contrast to the public blockchain networks like Ethereum. It is a permissioned distributed ledger system that is curated in sync with the standards set by the capital markets. A person can access the solution for issuance and settlement only through PrimeNet Members, including investment firms, brokers, regulated exchanges, etc.
Philip Millar, CEO of HighCastle, quoted that
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. By integrating with the Archax exchange, HighCastle will provide our issuers and their shareholders with the additional channel of trading and liquidity.
Archax is gearing up to list tokenized securities of all kinds which fulfill its eligibility requirements for listing. In the nascent stage, it will lay more focus on illiquid assets like equity in private firms, debt, property, art, funds, etc. With the passage of time, the firm will expand its involvement in public companies as well.
The tokenisation 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. 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 tokenisation ecosystem gathers momentum,
said Graham Rodford, CEO of Archax.
Tokenization implies the issuance of digital assets on a distributed ledger technology, which is capable of providing an array of benefits concerning the ownership of these securities in private firms. Blockchain has helped the concerned industry in the field of liquidity premium, 24/7 trading, automated dividend disbursement, compliance mechanism, etc.