Bletchley Park Asset Management, the Jersey-based growth-oriented blockchain investment firm, today announced its latest strategic investment, taking a stake in Archax, the forthcoming institutional digital securities exchange based in London. Digital securities, also known as security tokens, take real-world assets and 'tokenise' them using blockchain technology.
Bletchley Park delivers an institutional approach to investing in blockchain technologies and the surrounding ecosystem, combining growth-orientated fundamental blockchain investing with pure alpha, market-neutral strategies, enhanced by quantitative analysis to reduce volatility and risk.
Archax, which plans to launch later in 2019, is focused on providing a venue for institutions and professional investors to trade in all types of digital securities globally. Its application to operate a multilateral trading facility (MTF) in London is currently being considered by the FCA.
Lewis Fellas, Chief Investment Officer at Bletchley Park, comments: "We are strong believers in the institutional adoption of blockchain technologies, and the financial markets space is a key area where they have the potential to disrupt, as well as add real value too. We are keen to invest in innovative products and teams that really understand this space, and the potential of the technology. Archax clearly fits the bill. We are pleased to have been able to make an early investment in their seed fund stage and are excited about their future potential and the investment opportunities the exchange will bring to market."
Graham Rodford, CEO and Co-Founder of Archax, adds: "We see the tokenisation of assets as the next significant step in the evolution of financial markets. As well as bringing liquidity to assets that are currently illiquid and hard to trade, blockchain technology also has the potential to revolutionise traditional liquid financial markets too – particularly by bringing efficiencies and cost savings to the post-trade space. Whilst looking for seed investment, we were keen to find partners who understand what tokenisation can bring and that could add real value to the Archax business. Lewis and the team at Bletchley Park deliver exactly that."
Archax is also planning its own security token offering (STO) later in 2019, where it will tokenise and offer for sale a portion of its own equity.