Covario AG announces partnership with Archax
Further enabling Security Token Offering (STO)-inclusive digital assets management services for institutions
9 July 2021
With a global vision of facilitating market efficiency for digital assets, Covario AG has joined forces with Archax, a pioneering UK-regulated Security Token Exchange — broadening the horizon for institutions to cryptocurrency trading as well as digital securities.
Among other benefits, the collaboration equips Covario’s institutional clients with enhanced capabilities and efficiencies when handling Security Token Offerings (STOs). Archax is a regulated, institution-grade platform with a global reach, and the first-ever digital securities exchange to be licensed by the UK’s Financial Conduct Authority (FCA). The company enables its members to invest in asset classes previously illiquid or difficult to trade — embracing what Covario believes to be one of the great new paradigms of blockchain technology.
“Tokenization and securitization essentially aim to solve a problem that has long existed in markets, which is to make illiquid assets liquid. There is tremendous amount of potential in this space, which makes it so exciting, but this also means there is a lot of work to be done,” commented Mark Banner, Co-Founder and CEO of Covario. “We connected and learned that Archax has been working in the direction of solving this problem for a very long time. While STOs for institutions is still rather an uncharted territory, we believe with industry disruptors like Archax, we will get there eventually.”
Graham Rodford, CEO of Archax, adds: “We are excited to be working with such a forward-thinking prime brokerage as Covario. We have built Archax to form a bridge between the emerging crypto space and the traditional, institutional world, and to provide the benefits of tokenization and blockchain technology to capital markets globally. We know digital assets are the future of financial markets and look forward to continuing to pioneer their use under this partnership”.
As part of its services, Archax performs its own due diligence on all participants and issuers, to ensure secure trading involving only approved counterparties and in credible issuances.