Lykke & Nxchange to Launch New Tokenized Securities Exchange

  • Experienced trading platform developers, Lykke and Nxchange, will be launching a tokenized securities exchange. 
  • In addition to cryptoassets, the new exchange will facilitate the trading of traditional assets such as equities and bonds.

Lykke, a Switzerland-based developer of a blockchain-enabled ”global marketplace for the free exchange of financial assets”, and Nxchange, a “regulated market / multilateral trading facility-licensed” Dutch securities exchange platform, have partnered to launch a Europe-based regulated tokenized securities exchange.

According to the announcement’s press release, the partnership will involve Lykke becoming an equity shareholder in Nxchange.

The development of the new securities exchange platform will be funded by Lykke.

Trading Cryptoassets, Equities, Bonds, Investment Products

Notably, the exchange will use proprietary blockchain-enabled “cryptoasset trading infrastructure” developed by Lykke. Nxchange is expected to contribute to the project by helping to “facilitate safe and regulated trading” on the new tokenized securities exchange.

Investors will be able access “a far greater and more diverse variety of financial assets” via the regulated platform, and the Lykke Nxchange wallet will be provided to users so that they can “access and store digital assets on the exchange.”

Any asset or security such as traditional equities, bonds, loans, and investment products may be “tokenized and traded” on Lykke and Nxchange’s blockchain-powered trading platform.

Moreover, the exchange will use “embedded” smart contracts to “guarantee the rights of all users” - which includes the distribution of dividends, “voting rights”, and “asset ownership.”

A "More Equitable And Democratic Financial World"

Nxchange has also partnered with ABN Amro, the third largest bank in the Netherlands, in order to develop a distributed ledger technology (DLT) based bank account. It will be used to settle transactions in “real-time against fiat currencies” - which will be held in the “custody of ABN Amro clearing bank.”

Commenting on the development of the tokenized securities exchange, Richard Olsen, the founder of Lykke Corp. and futures commission merchant, OANDA, 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.

Richard Olsen

"Real-Time, 24/7, Transparent" Capital Market Transactions

Marleen Evertsz, the founder and CEO of Nxchange, remarked: 

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.

Marlene Evertsz

As CryptoGlobe reported recently, South Korea-based crypto exchange, Bithumb, and American crowdfunding platform, SeriesOne, have announced that they will be launching a US-based securities token exchange.

The exchange is expected to go live in early 2019.

OKEx to Launch Bitcoin Options Trading Before Year's End

Popular cryptocurrency exchange OKEx has announced it’s set to launch bitcoin options trading later this month on December 27, with a simulation set to begin on December 12.

As detailed in a press release shared with CryptoGlobe, the move will see OKEx become the first cryptocurrency exchange to offer crypto-to-crypto trading pairs, spot, futures, perpetual swaps, and options trading in a single platform.

OKEx will offer its traders both buy and write (sell) options which “enhances trade flexibility and market transparency with trade prices that closely reflect market trends.” Other bitcoin options platforms so far only offered buy options. The exchange’s release notes it’ll use a rigorous anti-manipulation system “designed to prevent close price manipulation.”

OKEx’s CEO, Jay Hao, said:

We have been seeing the increasing demand of crypto derivative products across all our client segments, especially from our institutional clients, which have shown the fastest growing demand in derivative trading, especially on futures or perpetual swap. We aim to provide the broadest range of trading and risk management tools to all our clients.

Hao noted options are a unique instrument that lets traders manage, price, and hedge the volatility of cryptoasset with a combination of contracts. Options are a derivative that gives traders an opportunity to buy or sell an underlying asset depending on the contract they hold after paying a premium.

To access OKEx’s options trading users will have to go through a know-your-customer (KYC) verification process, and pass a suitability test to show they understand what they’ll be trading.

As CryptoGlobe recently covered the cryptocurrency exchange is also set to soon launch USDT-margined perpetual swap trading, on December 16. The USDT-margined perpetual swap delivers several underlying cryptocurrencies to speculate on including BTC, EOS, ETC, ETH, LTC, BCH, BSV, TRX, and XRP. Traders will be able to use a massive range of leverage, from 0.01-100x.

Derivatives exchange giant CME Group is also looking to launch an options product that’s tied to its bitcoin futures offering. Bakkt, the Intercontinental Exchange’s crypto venture, is set to soon launch options contracts as well. Deribit and LedgerX already offer options trading.

Featured image via Unsplash.