Archax has been regulated by the Financial Conduct Authority (FCA) as the first digital securities exchange and custodian in the UK.
This marks an important milestone for the developing global digital securities ecosystem, as it will allow digital issuances from around the world to access and trade on an FCA-authorised secondary market.
Archax is also the first company to receive an FCA crypto asset registration to become a fully compliant virtual asset service provider. The regulation was introduced earlier this year under the amended Money Laundering Regulations.
Archax implements matching engine technology and market surveillance from Aquis, as well as private permissioned Corda blockchain for post-trade from R3, to integrate into existing trading workflows and deliver real-time settlements.
The FCA also regulated Archax to be a small- and medium-sized business (SME) growth market, allowing the exchange to provide primary channels for capital raising and a secondary market for digital trading. This authorisation covers permissions for multilateral trading facilities, client assets and brokerage.
David Lester, former chief strategy officer of the London Stock Exchange Group and advisor and non-executive director at Archax, explained: “In the current global economic climate, providing new, efficient ways for SMEs to access capital is key.”
“Blockchain and tokenisation are innovations that can empower more frictionless and transparent markets which, combined with an FCA regulated exchange like Archax, can deliver what capital providers, business leaders and founders now really need.”
Graham Rodford, CEO of Archax, added: “Our technology partners are second to none, we have a pipeline of 35 digital issuances in place, and we are signing up global brokers and market makers ready for go-live. This is an exciting moment for Archax and a great step in the evolution and legitimacy of digital securities globally.”
