First entity regulated under the Seychelles FSA regulatory Sandbox
London, Seychelles 15th June 2020. The Seychelles-based SECDEX Group, which comprises a licensed, regulated exchange (offering traditional and digital assets), central counterparty clearing house (CCP) and central securities depository with registry, is pleased to announce the latest addition to the group, SECDEX Digital Custodian (SDC). SDC has been regulated under the Financial Services Authority (FSA) Sandbox to offer digital custody services and is now live.
As with all the companies within the SECDEX Group, the focus is to operate organised and reliable market infrastructure within regulated environments, which are attractive for participants and provide certainty to investors. SECDEX Exchange, which is live with its first members, facilitates the tokenisation, registration, primary issuance and secondary trading of any credible securities with SDC handling safe custody with a well-defined on-boarding and legal process.
SDC caters for a broad range of digital assets, including security tokens and cryptocurrencies such as Bitcoin for customers choosing to put their digital assets in its safe custody, with robust layers of security to prevent fraud and misappropriation. Wallet keys and key backups are stored with strong encryption. SDC services the digital custody needs of both private and institutional clients (including third party exchanges, marketplaces and financial institutions), by handling custody, escrow services, automated transfers, balance confirmations and account related requests.
The SECDEX Group in a short space of time has already attracted USD 544,718,948 of assets, which it has tokenised, with immutability and transparency on the Ethereum blockchain and held in secure digital custody with SDC. These assets come from multiple sectors and geographies including:
- AEEX South Africa Limited – South Africa – Exchange venture for digital assets.
- ALTX Africa Group Limited – Mauritius – Exchange and post trade group with regulated presence in Uganda.
- CWAY Automotive LLC – USA – Electric Vehicle Technology (EVT) firm, which will be the first hybrid (traditional and digital) private placement listing on SECDEX Exchange for its convertible notes issuance.
- Demand Derivatives Corp – USA – Exchange and market infrastructure venture for unique financial derivatives.
- Digital Partners Network Limited – Seychelles – Future focussed digital transformation as a professional service.
- Hamilton Fintech Limited – UK and France – A digital Fintech venture by Evariste Quant Research to launch Exchange Traded Fund (ETF) backed stablecoins and investment products.
- FinComEco Limited – Mauritius – Blockchain enabled financial inclusion for farmers through commodities.
- GMEX Group Limited – UK – Traditional and digital asset FinTech enablement for exchanges and post trade.
- Great West Ltd – Mauritius – Real Estate project, tokenised as a real-estate security token (REST).
- La Preneuse Beach Ltd – Mauritius – Real estate project, tokenised as a REST.
- SECDEX Group Limited – Seychelles – An ecosystem for hybrid regulated exchange and post trade services.
- Wingstar Trading Pty Ltd (T/A Revenue-Share Capital) – Australia – A cash flow securitisation company.
Hirander Misra, Chairman of SECDEX Group said, “We are delighted that SECDEX Digital Custodian is now live and has been granted the first Sandbox regulatory approved by the FSA.” He continued, “There is immense interest in the regulated SECDEX ecosystem from issuers, investors, traders and asset holders, as their need for exposure to digital assets in addition to traditional asset classes continues to grow, and we are pleased to welcome our new clients.”
Dr Steve Fanny, CEO of the Seychelles Financial Services Authority, commented, “The FSA is pleased that SECDEX Digital Custodian is now authorised in our Sandbox, which provides a regulated environment within which Seychelles-registered companies carrying out FinTech-related financial services within the securities industry can operate.” He added, “The Sandbox is instrumental in our strategy of moving the non-bank financial services of Seychelles to the next level, as it will not only attract higher value-added products and services to our financial services sector, but will also demonstrate that the jurisdiction is modern and forward-looking.”
Jessica T.Naga, Legal and Compliance Director at SECDEX Group, said, “Operating as a regulated entity in the FSA Sandbox enables SECDEX Digital Custodian to provide our digital custody solutions across borders, whilst ensuring compliance with stringent regulatory criteria. She added, “The fact that the FSA Sandbox is part of the Global Financial Innovation Network (GFIN), which consists of over 50 financial regulators and related organisations, is a major advantage for firms like us to offer innovative financial products and services in multiple jurisdictions.”
SECDEX utilises the proven GMEX Fusion hybrid centralised & blockchain distributed ledger technology suite, which is deployed and trusted by multiple international regulated financial institutions around the globe.
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The Seychelles-based Securities, Commodities and Derivatives Exchange (“SECDEX”) is a market infrastructure ecosystem located in the Seychelles. It is a multi-asset hybrid exchange combining the benefits of a digital exchange with those of a traditional exchange. It focuses on securities, debt, spot commodities and derivatives contracts in traditional and digital tokenised form.
The Group consists of:
- SECDEX Exchange Limited (“SECDEX Exchange”), which is authorised and licensed by the Seychelles FSA to operate a regulated securities exchange with multi-asset capabilities, which include derivatives and digital assets.
- SECDEX Clearing Limited (“SECDEX Clearing”), which is authorised and licensed by the Seychelles FSA to operate a regulated central counterparty (CCP) clearing house to clear trades executed on SECDEX Exchange.
- SECDEX Depository Limited (“SECDEX Depository”), which is authorised and licensed by the Seychelles FSA to operate as a regulated central securities depository and registry for securities listed on SECDEX Exchange.
- SECDEX Digital Custodian Limited (“SECDEX Digital Custodian” or “SDC”), which is authorised and regulated under the regulatory Sandbox of the Seychelles FSA to operate digital custodial services for a broad range of digital assets.
- SECDEX Digital Marketplace (“SDC Digital Marketplace” or “SDM” or “SECDEX Marketplace”), which operates as part of SECDEX Digital Custodian Limited as a trading venue to offer a broad range of cryptocurrencies. These by being in custody can be traded.
For more information visit www.secdex.net or follow us on Twitter @SecdexG