LSEG Helps Blockchain Startup Raise £3 Million from Tokenized Shares

The U.K. based blockchain startup, 20|30 has reportedly raised £3 million through the sale of tokenized shares on the London Stock Exchange Group (LSEG), the Telegraph reports April 15.

The equity which can be traded for real cash on the LSEG’s Turquoise platform has become one of the latest efforts to modify the financial market using tokenized equity. However, the tokenized shares would undergo a one-year lock-up period before it becomes accessible to its buyers who are mainly institutions.

As per the report, 20|30 believes it can introduce change in the capital markets through tokenized equity and also guarantee security using blockchain technology. Such an innovative move certainly makes for more liquidity in the market and leaves it on the cusp of replacing existing financial intermediaries.

How 20|30 Qualified For LSEG Listing

20|30 reportedly qualified for the listing on LSEG because the U.K. Financial Conduct Authority (FCA) selected it among the fourth cohort of its regulatory sandbox in July 2018.

It was this approval that paved the way for the LSGE to examine 20|30’s issuance and tokenization of equity based on compliant custody, clearing, and settlement system.

Speaking after the successful trial which is arguably the first of its kind on an FCA regulation stock exchange, 20|30 Co-founder and Chief Risk, Timer Sofinzon disclosed that the firm had further plans with regards to securities tokenization.

According to him, the startup plans to launch a new platform that allows other companies to issue securities, thus reinventing both the private equity and public market.”

The LSEG on its part describes the milestone as a way to explore some essential tools to “help companies raise capital in a more efficient and streamlined way.”

In a similar development, Coinfomania recently reported that trading platform eToroX secured approval from the Gibraltar Financial Services Commission (GFSC) to establish a new exchange. The newly proposed platform will allow eToro to offer trading of tokenized shares to it’s 10 million clients.