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Investment Tips | Invest In Private Markets And Alternative Assets With iSTOX

iSTOX is an investments platform that provides access to private markets and alternative assets, such private equity, hedge funds, unicorns, corporate debt and other alternative assets.

This platform eliminates intermediaries and draws on the private Ethereum blockchain and smart contract technology to lower costs, boost transparency, and provide more options to users (investors and issuers).

Investors can start with as little as $1,000 in opportunities that previously were only available to exceptionally wealthy and influential investors.

It is also the world’s very first regulated platform that offers issuance, settlement, custody, and secondary trading of digitized securities.

It is based in Singapore and is open to all non-US accredited investors and institutional investors.

1. Factsheet

Company type For profit
HQ location Singapore
Founded date 2017
Status Active
Website iSTOX

Background

2017, November: Launch of iSTOX owned by blockchain infrastructure firm ICHX Tech Pte. Ltd. regulated by the Monetary Authority of Singapore (the “MAS”) as a capital markets services licensee for dealing in capital markets products and providing custodial services, and a Recognised Market Operator.

2018, September: Singapore Exchange, Asia’s leading international multi-asset exchange and Heliconia, a subsidiary of Temasek Holdings focused on investing in fast-growing companies, agree to join ICHX as investors.

2019, May: ICHX is accepted into the MAS Fintech Regulatory Sandbox.

2019, September: Kiatnakin Phatra Financial Group, a prominent Thai investment bank, and pioneering private wealth business agree to join ICHX as an investor.

2019, October: Tokai Tokyo Financial Holdings (via subsidiary Tokai Tokyo Global Investments), a prominent Japanese financial services firm, agrees to join ICHX as an investor.

2019, November: ICHX completes the world’s first issuance, custody and trading of regulated DLT-based security on a single integrated platform.

2020, January: Hanwha Asset Management, South Korea’s leading comprehensive asset management company, agrees to join ICHX as an investor.

2020, February: ICHX graduates from MAS’ sandbox as a regulated Recognised Market Operator (RMO). ICHX is also awarded a Capital Markets Services (CMS) Licence to carry out dealing in capital markets products and to provide custodial services.

Business model

Founded in 2017, ICHX is a financial technology company which established an Security Token (ST) exchange platform called iSTOX for the issuance, custody and secondary trading of digital securities in Singapore.

What is iSTOX?

iSTOX is the first fully regulated platform in a major financial center to offer issuance, settlement, custody and secondary trading of digitized securities. It allows the issuance, investment and trading of fully-regulated digitized securities.

Through its platform, iSTOX provides liquidity and access to previously inaccessible parts of the capital market in a secure, compliant and cost-effective manner.

iSTOX received investments from SGX (Singapore Exchange Ltd.), meaning that the potential of Security Token Offering (STO) exchange was acknowledged at the national level.

How does iSTOX work?

iSTOX works by using a private Ethereum blockchain and smart contract technology to make the investment process more accessible and far less costly. This way, accredited and institutional investors can gain greater access to investment opportunities that are not otherwise available to them.

Moreover, its proprietary platform protocol enables a seamless interface with its custody and trading functionalities.

What Are Digitized Securities?

  • Simply put, digitized securities take the form of tokens on a secure distributed ledger (also known as a blockchain);
  • Digitized securities offer key benefits over more traditional forms of securities, including instant settlement and cost-free custody;
  • Digitized securities are recognized as securities under Singapore law.

How does iSTOX protect user funds and securities holdings?

iSTOX was built from the ground up with user safety and security in mind.

To begin with, all funds transferred to iSTOX accounts are held in a customer segregated account with DBS, the Singapore’s leading consumer bank. Beyond this, all iSTOX accounts are protected by multiple layers of cybersecurity protections.

In addition, iSTOX make two-factor authentication and SSL encryption mandatory across the platform.

iSTOX also ensures all asset ownership and financial transactions are recorded on its immutable proprietary distributed ledger. That way, there is a reliable record if anything goes wrong.

Note that iSTOX digitized securities are non-transferrable and non-tradeable outside our platform, which reduces the incentive for theft. Proceeds from the sale of digitized securities can only be credited into bank accounts that have been specified by iSTOX investors.

2. How to make cash

How does iSTOX make cash

When subscribing to new digitized securities, iSTOX platform charges an initial sales fee based on the percentage of total subscription amount.

Who are the Clients 

Clients are: Investors: Accredited investors and institutional investors.
  • Yearly income of at least S$300,000 or
  • Net financial assets of at least S$1,000,000 or
  • Net total assets of at least S$2,000,000
Issuers: Parties interested in conducting an issuance on iSTOX.
  • Companies with net assets exceeding S$10 million in value or
  • Companies where the entire share capital is owned by one or more persons, all of whom are accredited investors

How do YOU make cash

The platform allows you to access various opportunities across private equity, venture capital and alternative asset funds that you would not have been able to before.

iSTOX allows you to easily subscribe to securities at a fraction of the usual investment size and without going through onerous amounts of paperwork traditionally experienced when making just one of these investments.

Credit: iSTOX

iSTOX allows you to invest in Primary Offerings or trade On the Secondary Market – All In One Place.

Primary offerings

A primary offering is where a security (stock, bond, fund, etc.) is created by a company.

This is your first chance to get involved as an investor.

Credit: iSTOX

Secondary market

A secondary market is where existing securities can be traded among investors.

Credit: iSTOX

3. Admission process

Do I qualify as an iSTOX investor?

iSTOX is currently open to only accredited investors and institutional investors. The accredited investor wealth or income thresholds for an individual and a corporate are as follows: An individual:
  • Whose net personal assets exceed S$2 million (or its equivalent in foreign currency) in value, or
  • Whose financial assets (net of any related liabilities) exceed S$1 million in value (or its equivalent in foreign currency), or
  • Whose income in the preceding 12 months is not less than S$300,000 (or its equivalent in foreign currency)

How do I sign up as an investor?

Please note that iSTOX is only open to accredited investors and institutional investors. Click here to find out if you qualify. Follow these steps to set up an iSTOX account as an accredited investor:
  1. Click here to sign up and select ‘Individual’
  2. Key in your account credentials and verify your email
  3. Key in your mobile number and key in the 6 digit OTP to verify your mobile number
  4. Key in your personal details and upload required documents
After you have submitted your application, the iSTOX team will conduct a KYC (Know Your Customer) and AML (Anti-Money Laundering) check. We will inform you of the outcome by email. Once you receive an email informing you that your application was successful, you may sign in to your account.

Do users need to pay to sign up as an investor on iSTOX?

There are no fees associated with opening an account on iSTOX. There will be fees associated with subscribing to primary issuances of digital securities, as well as secondary trading of digitized securities on iSTOX.

Click here to view the fee schedule for investors.

4. Expected income

The platform offers world class opportunities of investments from around the world.

Check the latest opportunities here.

Credit: iSTOX

5. Feedback

Accredited and institutional investors can now gain greater access to investment opportunities in structures that are not otherwise available outside a small, closed group of investors.

The key benefits are undoubtedly to allow to:

Access the inaccessible: Access private and non-conventional investment opportunities not commonly available in public markets.

Manage risks: Invest for as little as S$100 and own fractional digitised securities for better portfolio risk management.

Invest for less: With transparent and low transaction fees from 0.2%.

6. Site preview

Mat

Mat is the founder of cashtipsandtricks and has been working in the financial sector in Luxembourg for the past 10 years and brings his insights as an investor and entrepreneur.

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