Spice VC Announces Investment in Digital Securities Exchange Archax
Spice VC, the first fully tokenized venture capital fund, expands its portfolio with the addition of London-based market operator Archax.
Spice VC, a fully tokenized venture capital fund, has made a strategic investment in Archax, a forthcoming London-based digital securities exchange, the companies said in an emailed statement to Cryptovest. The partnership brings closer the vision of creating an ecosystem to generate and trade security tokens on a secondary market. Security tokens use various real-world assets to build their value and rely on a distributed ledger.
Archax plans to launch in 2019, adding yet another security token market in Europe. Until now, several projects have opened with the aim of offering security tokens trading, including Neufund, DESICO, and Extauri.
Spice VC started by creating its own security token. Co-founder and managing partner Ami Ben-David explained:
“When we started SPiCE, security tokens were in their early stages. By tokenising ourselves and investing in key infrastructure plays in the security token ecosystem, we have become widely regarded as pioneers in the space.”
The Archax exchange itself plans to issue a security token later this year, using part of its equity to back the asset.
“We see the tokenization of assets as the next significant step in the evolution of the digital asset world and something that could potentially revolutionize traditional financial markets too,” Archax co-founder and CEO Graham Rodford commented.
Archax aims to be a fully regulated, institutional grade exchange, Rodford explained in an interview for Cryptovest. He believes the project has an advantage due to being based in London as opposed to some launching in the periphery of Europe.
In some cases, security tokens have only been available to institutional or large-scale investors, usually requiring a brokerage account, as in the case of Neufund.
Exchanges are yet to connect security tokens with their marketplaces as there is no mass drive to conduct security token offerings (STOs). Unlike initial coin offerings, STOs are more difficult to carry out due to stricter compliance requirements.