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.

Stellar Lumen (XLM) Listed on Coinbase Consumer Hours Before IBM Blockchain Live Wire Announcement

Around 17:45 UTC on Monday (March 18th), Coinbase announced that it was about to launch the digital asset Stellar Lumen (XLM) on Coinbase Consumer (i.e. Coinbase.com), its platform for regular retail investors/traders, as well as on Coinbase's mobile app.

Stellar is "an open-source, decentralized protocol for digital currency to fiat currency transfers which allows cross-border transactions between any pair of currencies;" this protocol, was designed by Jed McCaleb (a former CTO of Ripple) and Joyce Kim, is supported by the nonprofit organization Stellar Development FoundationLumens (XLM) "are the native asset of the Stellar network."

Last Wednesday (March 13th), as reported by CryptoGlobe, Coinbase announced that Stellar Lumen (XLM) had been added to Coinbase Pro, its platform for professional/experienced traders/investors. 

Here is how Coinbase first announced today's news on Twitter:

And then three minutes later, came this tweet:

This is how Coinbase's blog post describes XLM:

"Stellar’s cryptocurrency, the Stellar Lumen (XLM), powers the Stellar payment network. Stellar aims to connect banks, payment systems and individuals quickly and reliably. Since its launch in 2014, its vision has been to unite the world’s financial infrastructure so that money can flow quickly and cheaply between banks, businesses, and people. The Internet connected the world’s computers so that information could be shared globally. Stellar aims to do the same for money."

Two things worth noting are:

  • "... inbound transfers and many sends require the specification of an XLM destination tag."
  • "XLM will be available for customers in most jurisdictions, but will not initially be available for residents of the United Kingdom or the state of New York."

Here is a chart by CryptoCompare showing XLM's price action during the past 24-hour period:

CC 24-Hour Chart for XLM - 18 March 2019.png

Today's Coinbase announcement about XLM came just (roughly) eight hours before Jesse Lund, IBM's Vice President of Blockchain and Digital Currencies, will make an announcement about his company's cross-border payments solution "IBM Blockchain World Wire" (which runs on the Stellar network) at the Money20/20 Asia conference (March 19–21) in Singapore.

Lund will be joined on stage by Jed McCaleb, co-founder of Stellar, Ripple and Mt Gox. Lund hinted at this upcoming announcement during an interview with Australia's largest comparison site Finder.com.au that was published on February 20th.

Here is what Lund said about Blockchain World Wire at that interview:

"The architecture of World Wire is really a cross-border payment network, the magic of which is the ability to send a payment message instruction saying 'Hey, I'm sending you something; get ready!' and on the other end, the receiver is making sure that who you are sending it to is not some nefarious actor or bad actor, but once that happens, and that happens really fast, then we send the value along, and that transfer of value is made possible by an ecosystem of digital settlement instruments, of which [Stellar] lumens is one...

IBM's long game in this is to be the network operator... So, the subscribers, the customers, if you will, of World Wire are market makers who really provide the pay in, pay out locations, and they themselves have corporate clients and probably retail clients. So, we're really providing a kind of conduit through which money can flow in real-time." 

Featured Image Courtesy of Stellar Development Foundation