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Tokenization startup: Why this market is worth it

The London Securities Exchange Group (LSEG) has led a USD 20 million investment round in startup fintech Nivaura, Reuters reported on February 27. The British startup blockchain is the creator of the first world bonus, supposedly crypto-denominated, established in a blockchain.

LSEG paid an undisclosed amount for a minority stake in Nivaura

The startup provides blockchain solutions that automate the issue, clearing and settlement of financial instruments, including the issuance of bonds and tokenized securities.

Together with LSEG, the risk capital division of Banco Santander, Santander InnoVentures, was among Nivaura’s investors

LSEG’s international development chief, Nikhil Rathi, told Reuters that Nivaura’s investment is aligned with the exchange operator’s goal of taking advantage of new technology that can diversify products, provide efficiency gains and boost growth.

Nivaura argues that tokenize debt and capital can reduce the processing time of financial instruments by up to 80 percent, and drastically reduce the costs of obtaining capital. The startup has pointed out that its platform is a modular solution, “which facilitates the automation of the entire life cycle of a financial instrument”. The platform also allows issuers to “easily access financial markets and connect to existing technology platforms, such as settlement systems or blockchain infrastructures”.

Issuance of a bond denominated Ethereum (ETH) and settled in blockchain of 2017

Nivaura operated under the aegis of the regulatory entity of the Financial Conduct Authority of the United Kingdom, thus addressing the full range and complexity of legal and regulatory matters related to the tokenization of capital markets.

As reported, LSEG technology solutions provider LSEG Technology recently announced that its scalable, low-latency adaptive engine – used in traditional exchanges such as LSE, Borsa Italiana, the Oslo Exchange and others – will be used to feed an upcoming exchange of digital assets based in Hong Kong.

The recognition of the efficiency of blockchain to rationalize financial instruments continues to increase

Earlier this month, the second largest bank in Spain, the Banco Bilbao Vizcaya Argentaria (BBVA), launched the supposed first platform of structured (sustainable) green bonds backed by blockchain. In December, BBVA had closed with a non-Spanish borrower a loan of USD 169 million through blockchain.

Across the globe, the Australian Securities Exchange is working to implement blockchain technology to replace its current capital transaction processing system.

Published inStartups

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