InvestaX has built key infrastructure for the issuance, trading and custody of Digital Securities, STOs & NFTs. The first STOs came out in 2017, but the promise of liquidity for illiquid assets, global investor base, new investment products was short lived as there was no infrastructure to facilitate this.
Fast forward to 2022, now there is a strong and growing global community of Digital Securities and STO platforms. We named 25 in our 2022 STO predictions report who are licensed and technically able to finally deliver the promise of STOs in a compliant, legal and tokenized manner. The infrastructure is now here, the game has changed.
So we now have broker-dealers, exchanges and custodians who are all integrated with blockchain technologies, providing some of the necessary infrastructure for the growth of the digital securities industry, but one of the last key pieces of infrastructure was still missing…..until now, liquidity providers for STOs and DSOs.
InvestaX is excited to announce our latest strategic partnership with IX Swap, the world’s 1st automated market maker (AMM) and liquidity pools for Digital Securities, STOs and NFTs.
This is a world first innovative solution bringing the Digital Securities, STO and NFT markets the first liquidity options which are:
- Connecting Centralized Finance (CeFi) + Decentralized Finance (DeFi)
- Crowd sourced liquidity pool
- Issuer-led liquidity, meaning, any DSO/STO/NFT owner/manager can start the first liquidity pools for their offering, similar to how it works when listing a cryptocurrency on an exchange (CEX & DEX)
Learn more by listening to the following short introductions:
Why is this a game changing addition to the marketplace?
To explain further, I’d like to tell a short version of the story of publicly traded USA startups. In 2021 in the United States, there were 5,400,000 applications to form new businesses. In the same year, only 951 companies went public. So essentially a tiny percentage of companies ever get listed where they enjoy the benefits of having the liquidity on publicly traded exchanges. The main advantage public companies have is their ability to tap the financial markets by selling stock (equity) or bonds (debt) to raise capital (i.e., cash) for expansion and other projects. They can do this because “everyone” can buy and sell their shares, and because there is liquidity and transparency about the company, its share price, volume and other pertinent information investors want to know when they make a trade.
What has this got to do with STO/DSO and IX Swap?
The point is that a very small subset of companies enjoy the benefits of being publicly listed, which requires a lot of money, typically a very big company and huge resources. So what happens to the rest of the companies? Well, the answer is nothing, they are private companies, there is little to no transparency about the sales and revenues of the company, they do not have shares that are easily accessible and tradable on an exchange and are plagued with other challenges existing in the private markets.
Digital securities and security tokens use blockchain technology and smart contracts to digitize/tokenize shares or interests in private market assets, so these companies can reap similar benefits as public companies, but leap-frogging legacy technologies and infrastructure to improve operational efficiencies and reduce costs.
Now tying it back to IX Swap. The Digital Securities industry is still nascent but starting to quickly grow. Like any new industry, there is a chicken and egg problem, there are currently few traditional market makers providing liquidity for STOs or DSOs, but as more established companies list that are "easier to value", accessible to more investors and are higher quality STOs and DSOs than before, this problem will get solved. What "traditional" market maker would not be excited by the trillion dollar STO/DSO/NFT market in the making???...
However, it is important to reflect on the example above with US public listings and draw some parallels. As more and more Digital Securities exchanges come to the market, traditional market makers are likely to still only provide liquidity to the largest DSOs or STOs with similar characteristics as publicly traded products which make them "viable exchange traded products".
So then what about everyone else? The other 99% of startups when they are all tokenized and exist as digital securities, where are they going to get liquidity?? .....The answer is IX Swap.
The beauty of the design and functionality of IX Swap is that any issuer of an NFT/DSO/STO can create the first liquidity pools for their project to start life as a tradable digital asset. This is truly game changing, similar to the exponential growth we saw on decentralized exchanges when Uniswap launched a similar system for crypto, IX Swap aims to do that for Digital Securities and STOs.
Private markets are a $15 Trillion USD market opportunity, and as the Digital Securities industry continues to build out with more exchanges, brokers, custodians and 3rd party service providers around the world utilizing blockchain as the underlying technology, there will be even more STOs and DSOs wrapping real estate, private equity, venture and startup assets in the market. The desire and need for all of these DSO/STO issuers to seek liquidity makes IX Swap's mission to be the largest liquidity provider for all DSO/STO and NFT assets even more valuable, and has the potential to exceed the volume of traditional market makers as IX Swap is protocol and platform/exchange agnostic. The total addressable market for IX Swap is the entire private markets (which we believe will eventually all be tokenized) and our partnership with IX Swap means InvestaX has the only blockchain based liquidity solution for most of the DSOs/STOs in the market today.
To find out more about this exciting development please join the strong and growing community on the official IX Swap media channels and be careful of scam and impersonators that are rife in the blockchain space. IX Swap Telegram Official | Telegram Announcement | Website | Twitter | Discord | Youtube | Reddit | LinkedIn
At InvestaX, we offer the leading Singapore Licensed Tokenization Service-as-a-Software (SaaS) platform for Real World Asset Tokens (RWA) and Security Token Offerings (STO). We provide a one stop shop for tokenized assets for global investors, including real estate, private equity, venture, ESG, startup, private credit/debt and more. We also provide IX Swap, the first legal and compliant Automated Market Maker (AMM) for RWA and STO.
If you are interested to learn more about how you can build your business on top of our infrastructure and what we can offer you as your tokenization partner, then contact us here. Thank you.