CapBridge to Use Ethereum’s Mainnet for Equities Trading

Singapore-headquartered CapBridge 1exchage (1X) on Tuesday announced that it would integrate Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term technology to offer trading services as well as to register and track shareholdings of investors.

Unlike other financial institutions, the trading platform will use the public Ethereum mainnet and has partnered with Consensys and Equiom to deploy the decentralized technology.

Launched in 2014, Ethereum is the leader in smart contracts and has over 60 million users. 1X believes that a user base of this size would allow it to share a global Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term pool, diversifying its investors, according to the press release shared with Finance Magnates.

The executives of the exchange are optimistic about the decade-old technology, as Choo Haiping, CEO of 1X, said: “With DLT-enabled shareholding registration, investors on the 1X platform can independently verify and validate their shareholdings in real time without the manual process of going through an exchange or a trust administrator. The immutable nature of DLT provides the assurance of accuracy in recording and verifying both investor identity and the associated shareholdings.”

Equities trading on the blockchain

The exchange will leverage the smart contracts feature to permanently record the ownership data of the shareholders. This, according to the exchange, will provide “comprehensive” and “accurate” services to its clients.

“The DLT architecture further adds to the robust and efficient 1X infrastructure – providing a trusted environment for market participants to trade with assurance. We believe the enhanced level of trust that 1X offers will provide greater comfort to investors and encourage more demand for private securities listed on 1X,” Haiping added.

Regulated by the Monetary Authority of Singapore (MAS), CapBridge also has plans to integrate blockchain-based compliance services along with automated dividend issuance.

“Deployment of 1X on public Ethereum will increase visibility, lower the cost of compliance, drastically reduce the possibility of improper manipulation of the system of record and create positive growth for the private securities industry,” Joseph Lubin, founder of Consensys and co-founder of Ethereum, added.