The London Stock Exchange Group (LSEG) has reportedly led a $20 million investment round in a fintech startup called Nivaura, which is behind the issuance of the first automated cryptocurrency-denominated bond.
London Stock Exchange Invests in Tokenization Startup
The LSEG has led an investment round worth $20 million in the startup Nivaura, Reuters reports. The stock exchange has paid an undisclosed amount to acquire a minority stake in the startup.
Other investors in the round include Santander InnoVentures which is Banco Santander’s venture capital arm.
Nivaura is the company behind the reportedly first crypto-denominated and blockchain-settled bond in 2017.
According to the Head of International Development at LSEG, Nikhil Rathi, the investment in Nivaura falls in line with the stock exchange’s plans to leverage new technologies to develop products, support growth, and boost efficiency.
Cutting Costs for Raising Capital
Nivaura provides the infrastructure to syndicate tokenized securities, registered on a blockchain. Supposedly, this is aimed at improving the otherwise expensive and inefficient process of issuing bonds and equities.
The report also says that Nivaura is able to reduce the time required for a financial instrument to hit the market by as much as 80 percent. As detailed, this could allow smaller companies to tap into the capital markets.
The move marks yet another foray of the London Stock Exchange into the field of blockchain-based technologies. Bitcoinist reported earlier in January that the LSE has sold its trading technology to a Hong Kong-based cryptocurrency exchange AAX.
Similarly, an Estonian digital trading platform – DX Exchange used Nasdaq’s matching technology to launch the first Ethereum-based tokenized stocks which are regulated under the laws of the European Union.
What do you think about the London Stock Exchange Group leading the investment round in Nivaura? Don’t hesitate to let us know in the comments below!
Images courtesy of Shutterstock