The London Stock Stock Exchange Group (LSEG) has lead to a $20 million investment in the Fintech startup Nivaura. The startup firm is the first company to offer crypto-denominated, blockchain-settled bond.
LSEG has reportedly paid an undisclosed amount to gain a minor stake in the Nivaura firm. The startup promises to automate the issuance, clearing, and settlement of financial instruments through blockchain solutions. The firm also offers bond issuance and tokenization of security assets.
The Nivaura startup firm attracted investments from Banco Santander’s venture capital arm, Santander InnoVentures apart from the LSEG.
Nikhil Rathi, the head of international development at London Stock Exchange Group told Reuters that the new partnership is aimed at harnessing new technologies to boost the efficiency gains and growth of a diverse range of products.
Nivaura Promises To Cut Processing Time By 80%
Nivaura promises to cut the processing time of financial tools for tokenizing debt and equity by 80% and also significantly reduce the cost of raising capital for the same. The platform calls itself a modular solution, “which facilitates the automation of the entire lifecycle of a financial instrument. The platform also allows issuers to easily access the financial markets and can connect into existing technology platforms such as the clearing systems or into blockchain infrastructures.”
The recent foray of traditional asset management firms into the Fintech and Blockchain solutions services is a morale booster for the crypto community. Blockchain solutions are playing an instrumental role in strengthening the financial tools making them more efficient and affordable for the masses.
Recently, the 125-year old Swiss bank Julius Baer announced its partnership with a blockchain solution provider Saba Crypto. The partnership was aimed at bridging the gap between traditional and digital asset management. Similarly, Spain’s second-largest bank, Banco Bilbao Vizcaya Argentaria (BBVA), launched the reportedly first blockchain-backed platform for structured green (sustainable) bonds
In another news, Australian Security Exchange is working towards bringing blockchain into its system to process equity transactions. The trend of traditional financial institutions looking towards the Blockchain for better solutions prove that Blockchain technology has the potential to help and build a more efficient financial world.