iSTOX, on Jan 21, announced that it has closed US$50 million ($66.3 million) for its Series A funding.
The global digital securities platform now counts JIC Venture Growth Investments (JIC-VGI), the venture capital arm of Japan Investment Corporation (JIC), and Development Bank of Japan Inc (DBJ), which is a financial institution wholly owned by the Japanese Government.
In addition, Japan’s Juroku Bank and venture capital firm, Mobile Internet Capital (MIC) have also joined iSTOX as new investors.
In the latest round of financing, iSTOX’s existing investors Singapore Exchange (SGX), Japan’s Tokai Tokyo Financial Holdings and Korea’s Hanwha Asset Management added to their holdings as well.
“The support of government-backed investors JIC-VGI and DBJ as well as other new investors in this round signals a rising confidence in the iSTOX digital securities platform and our business model,” says Choo Oi Yee, chief commercial officer of iSTOX.
“Existing shareholders SGX, Tokai Tokyo and Hanwha have also added to their holdings, which shows that investors who have engaged with iSTOX for some time continue to have strong conviction in our mission and our potential.”
“Capital markets are transforming rapidly because of advancements in technology. The regulator MAS and our institutional investors have been far-sighted and progressive, and they support the change wholeheartedly,” she adds.
According to iSTOX, the new financing will be used to expand the brokerage’s footprint in terms of onboarding blue-chip issuers and rolling out issuances involving Europe and Australia.
iSTOX is also looking to expand in China, where it signed a memorandum of understanding (MOU) with the Chongqing Monetary Authority in November 2020.
“Also in the iSTOX pipeline are issuance deals involving other regions, including Europe and Australia. The digital securities space will grow by leaps and bounds in 2021. iSTOX will lead the competition globally and bring positive change to the world of finance,” says Choo.
On the investment, Hideki Yarimizu, CEO of JIC-VGI, says, “We have decided to participate in the launch of the next generation of digital financial services and platforms covering Asia. We believe that this project will also contribute to the development of Japanese financial services. We look forward to working with iSTOX's management and shareholders.”