Digital security exchange, Archax granted license by UK regulator. The Financial Conduct Authority ( FCA) has issued multiple licenses to Archax, the digital securities exchange and custodian – making it one of the world’s first approved asset-class trading rooms.
On Wednesday, Archax said it was now licensed as a multilateral trading facility (MTF) exchange, a broker and a cash and asset custodian. It is also the first crypto-asset firm to be registered with the U.K.’s Financial Conduct Authority, a designation that will soon be mandatory for all companies working in the digital asset space from January next year.
The firm is now authorized to host offerings, act as a trading venue as well as custody digital securities. A digital security is a catch-all term for traditional assets, such as equity or debt, that has been tokenized and put on the blockchain.
With Archax granted license, this means that institutions will be able to trade digital securities on an authorized market for the very first time in the U.K.
Archax CFO Matthew Pollard said the firm employed its own specific admissions criteria for the type of digital securities it would allow on its platform and had become a “one-stop-shop” for the still-nascent digital securities space.