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.

Coinbase Becomes First 'Pure' Crypto Firm to Become Visa Principal Member

Francisco Memoria

San Francisco-based cryptocurrency exchange Coinbase has become the first “pure” cryptocurrency firm to become a Visa principal member.

The membership was, according to Forbes, officially awarded in December 2019, but it wasn’t revealed to the public until today via a blog post published by the exchange itself. The membership will allow Coinbase to cut expensive middlemen when it comes to the issuance of its debit card, which lets users pay with cryptocurrency wherever Visa is accepted.

Notably, the principal membership also gives coinbase the power to issue debit cards for other companies, although the cryptocurrency exchange claimed it isn’t planning to issue them for others anytime soon. Visa, Forbes reports, has confirmed it granted Coinbase the principal membership, but clarified the firm itself isn’t accepting cryptocurrencies.

Using the membership, Coinbase is set to issue a new version of the Coinbase Visa card, which was initially launched in April 2019 with the financial services firm Paysafe Group Holdings, which charges a fee for its service. This new version could reduce the fees Coinbase’s card is currently charging users as it cuts the middlemen. If fees are reduced, existing card holders will have to re-apply to receive a new card.

Zeeshan Feroz, CEO of Coinbase UK, which received the membership, noted that users’ BTC holdings have always been seen as illiquid “because you have to sell them, you have to go through a process, withdraw the money, and then spend it.” The card’s goal, he said, is to change that:

What the card is trying to change is the mindset that crypto is tucked away, takes two days to access, and can actually now be spent in real time.

The Coinbase Visa card isn’t available to U.S. residents and won’t be in the foreseeable future. It is, however, available in 29 countries including Denmark ,Estonia, France, Germany, Sweden, Spain, and the U.K. IT lets users spend nine cryptocurrencies including bitcoin, ether, bitcoin cash, Brave’s BAT, litecoin, and others.

With the membership, Coinbase could make fees charged to companies outside the cryptocurrency space in payments made with its card a new source of revenue, one that depends less on crypto price fluctuations. Feroz acknowledged it’s a possibility, but revealed it’s currently not a part of the firm’s plan as its “primary focus” is to build its services.

Featured image via Pixabay.