Singapore-based security tokenization and issuance platform, iSTOX, has secured $5 million in funding according to reports from a local news source, Finsme.
The new $5 million funding was reportedly provided by Japan-based Tokai Tokyo Financial Holdings (Tokai) via Singapore subsidiary, Tokai Tokyo Global Investments, and will open up other opportunities for iSTOX.
For instance, beyond having enough funds to expand its offering, the partnership is expected to give iSTOX a strategic gateway to serving accredited and institutional investors and issuers across Japan through Tokai’s extensive network.
It also comes at the right time given that iSTOX recently completed its first secondary security token issuance and is closely working with regulators in Singapore via a sandbox program designed to fine-tune the platform and other related projects.
iSTOX expects to graduate from the regulatory sandbox within Q1 2020 and fully roll out its security tokenization platform and other associated services.
Meanwhile, the latest funding follows an undisclosed sum which iSTOX raised in its September Series A and continues increasing the strong line up of institutional investors betting on the explosion of security token offerings in the next few years.
Singapore Exchange (SGX), Asia’s leading multi-asset market infrastructure and exchange operator, and Heliconia, a Temasek Holdings subsidiary focusing on investment in fast-growing companies are reported to be the other significant shareholders in iSTOX.
In a similar development last month, Stmarket.co reported that Huobi Japan, the Japanese arm of crypto exchange, Huobi, plans to venture into tokenized securities with a new $4.6 million equity funding from Financial Products Group (FPG).
Similarly, the Korea Internet Security Agency (KISA) pledged to support blockchain-related projects in the country with 10.5 billion won (appr. $9 million) in 2020.