Nivaura, a British blockchain startup, who is the developer of the world’s reportedly first crypto-denominated, blockchain-settled bond garners a $20 million in an investment round, that is reportedly led by The London Stock Stock Exchange Group (LSEG).
As per the Reuters report on Feb. 27, LSEG invested an undisclosed amount for a minority equity stake in Nivaura. The fintech startup provides blockchain solutions to automate the issuance, clearing, and settlement of financial instruments, which includes bond issuance and tokenized securities. Other investors include Banco Santander’s venture capital arm, Santander InnoVentures.
Nikhil Rathi, LSEG’s head of international development told the publishing that the Nivaura investment aligns with the exchange operator’s aim in order to harness new technology that can diversify products, provide efficiency gains and boost growth.
Nivaura could cut process time for tokenizing debt and equity by up to 80 percent, dramatically reduce the costs of raising capital. The startup further outlines that the platform is a modular solution, “which facilitates the automation of the entire lifecycle of a financial instrument.”
It will also allow issuers to “easily access the financial markets and can connect into existing technology platforms such as the clearing systems or into blockchain infrastructures.”
As for Nivaura’s issuance of an Ethereum (ETH)-denominated, blockchain-settled bond in late 2017 is operated under the aegis of the U.K.’s Financial Conduct Authority’s regulatory sandbox, which tackled the full gamut and complexity of the legal and regulatory issues involved in tokenizing capital markets.
LSEG’s technology solutions provider, LSEG Technology, has recently announced that its low latency, the scalable matching engine is currently in use at traditional exchanges such as LSE, Borsa Italiana, the Oslo Stock Exchange and others will be used to power a forthcoming Hong Kong-based digital assets exchange.