CMC Markets has finished the private placement of a shareholding in the UK using distributed ledger technology (DLT).
The firm says engaging a digital token to mark the shareholding starts a new phase in the company’s digital strategy.
The project, delivered by CMC CapX and run by StrikeX, was used as a proof-of-concept to demonstrate how DLT can be utilised with UK client-asset rules to move securities between investors.
CMC CapX, the corporate broking arm of CMC Markets, allowed the placement of the hybrid shareholding.
StrikeX built the mirror token on behalf of the issuer, representing the shareholding, on the Arbitrum Layer 2 blockchain.
The token was held by CMC Markets Investments, as custodian for the investor, using a digital wallet.
Laurence Booth, global head of capital markets at CMC Markets, said: “This project is a significant step in our digital strategy. With StrikeX, we are embarking on a plan to tokenise securities and derivatives markets, so that investors can trade 24/7.
“This collaboration between CMC CapX and StrikeX demonstrates the possibilities for services we can offer to issuers and professional investors. We will go further and create marketplaces that leverage the new technology and create new opportunities for investors, as well.”
NO FEE, NO RISK 100% ON RETURNSIf you invest in only one asset servicing news source this
year, make sure it is your free subscription to Asset Servicing Times
Image: Best/stock.adobe.com 