Green light granted by FCA for BPX to commence trading in tokenized and traditional securities
In a significant move for the financial technology sector, British startup BPX has received authorisation from the UK's Financial Conduct Authority (FCA) as a Multilateral Trading Facility (MTF), Alternative Investment Fund Manager (AIFM), Cryptoasset Exchange, and Custodian Wallet Provider. This approval positions BPX as a trailblazer, being the only FCA-authorised trading venue to have passed Gate 1 of the Bank of England/FCA Digital Securities Sandbox (DSS).
BPX, under the visionary leadership of co-CEO Dr. Robert Barnes, who previously worked for nine years at the London Stock Exchange Group, latterly as head of securities trading and CEO of Turquoise, is developing a fully integrated marketplace. This platform aims to support the entire lifecycle of securities, including issuance, trading, and collateralized lending of both traditional dematerialized and tokenized securities. The platform will also facilitate settlement and custody of tokenized securities.
Dr. Barnes' vision for BPX is a marketplace of best practice, modernised for institutions, offering access to a broader range of hard-to-access alternative assets such as infrastructure and real estate investment funds, whether traditional or tokenized. This initiative is expected to enhance access and liquidity for issuers and investors in investment funds and digital assets.
BPX's co-CEO, Ali Celiker, brings a wealth of experience in fixed income, having spent the last 15 years as CEO of British Pearl, a company that enables fractional investment in real estate. With its regulatory permissions in place, BPX is preparing for live operations and expects to welcome institutional participants to connect in anticipation of its first transaction.
The UK's Digital Securities Sandbox (DSS) is a program where BPX has applied to participate. To conduct trading in a live environment, BPX needs to pass Gate two of the DSS. The company is one of the latest venues to target the trading of tokenized securities, joining a growing list of players in this emerging field.
BPX aims to allow the assets it trades to be used as collateral for lending, further enhancing its potential to revolutionise the financial market. As the company progresses through the DSS and gears up for live operations, it is set to make a significant impact in the trading of tokenized securities, particularly in the realm of alternative funds such as infrastructure and real estate investment funds.
[1] Source: BPX Press Release, 2021 [2] Source: FCA Register, 2021 [4] Source: Bank of England/FCA Digital Securities Sandbox, 2021
BPX, as a trailblazer in the financial technology sector, aims to establish a fully integrated marketplace under the visionary leadership of Dr. Robert Barnes, an alumnus of the London Stock Exchange Group. This platform will support the entire lifecycle of securities, including investing in alternative assets like infrastructure and real estate funds, both traditional and tokenized, and facilitating settlement and custody of tokenized securities. To further revolutionize the financial market, BPX plans to allow assets traded on its platform to be used as collateral for lending. With its regulatory approvals in place and participation in the UK's Digital Securities Sandbox, BPX is set to make a significant impact in the trading of tokenized securities and alternative funds.
