Singapore’s Istox inks deal to set up digital exchange in China’s Chongqing city

Singapore-based fintech firm Istox said that it has entered into a strategic agreement with the city of Chongqing in China to set up a digital securities exchange.

Memorandum of agreement ceremony at the Monetary Authority of Singapore / Photo credit: Istox

The agreement was part of the third China-Singapore Financial Summit held on November 23 and 24. It was witnessed by Tang Liangzhi, mayor of Chongqing, and Ravi Menon, managing director at the Monetary Authority of Singapore.

“Together with our Chongqing partners, Istox can provide Chinese companies access to international capital by issuing digital securities to fund their expansion,” said Istox co-founder Darius Liu said in a statement. “Through Istox, Chinese investors can also gain access to high-quality global investments and a chance to diversify their investments geographically.”

The memorandum of understanding also involves the establishment of a broader Chongqing-Singapore financial services hub.

To move forward with the plan, Istox will potentially enter a tie-up with two state-owned investment companies under the Chongqing Municipal Government. Meanwhile, the Chongqing monetary authority will play a coordinating and advocacy role on matters that require approval from China’s national financial regulatory agencies.

Founded in 2017, Istox provides a blockchain-powered investment platform that allows multi-asset issuances of fractionalized securities, such as stocks and bonds. This gives more opportunities to underserved investors. The company is backed by Singapore Exchange and Heliconia Capital Management, a Temasek Holdings subsidiary.

Earlier this year, it raised US$5 million from South Korean financial leader Hanwha Asset Management. It also secured US$5 million from Japanese financial services company Tokai Tokyo in November 2019.