Lithuania-based infrastructure for tokenized securities startup Axiology introduced that it has raised over $2.1 million (€2 million) in funding. The startup, led by a former board member of the Financial institution of Lithuania Dr. Marius Jurgilas, secured funding from angel traders, Baltic Sandbox Ventures and Coinvest Capital.
Based on the announcement, the startup will use the funding in the direction of creating a completely useful, regulatory-compliant infrastructure, positioning it as one of many first tokenized monetary securities infrastructures within the EU.
Tokenized securities are conventional monetary property, similar to shares, bonds, or actual property, represented digitally as tokens on a blockchain or distributed ledger.
It has been noticed that top bills associated to monetary operations pose obstacles for firms searching for borrowing alternatives and impose burdens on small traders. An answer is required to deal with these challenges.
Axiology goals to create an environment friendly capital market infrastructure utilizing Distributed Ledger Expertise (DLT) and capitalize on rising EU laws, to mitigate the bills related to the issuance, buying and selling, settlement, and reporting of securities. By doing so, the startup goals to fortify the EU capital market, rendering it accessible and advantageous for each companies and particular person traders alike.
Axiology can be utilized for numerous functions, and one might be direct financing by common residents for any trigger they care about,” mentioned Axiology’s Dr.Jurgilas. “For instance, one of many first use circumstances we’re contemplating pertains to the protection wants of Lithuania. Our infrastructure would permit residents to make direct monetary contributions in the direction of the security of our nation. This is able to be an alternative choice to greater taxes or rising our nation’s overseas debt. In precept, it might probably facilitate any ESG monetary initiative.”
Axiology’s Function in Enhancing Securities Choices
A spin-off of the SUPER HOW? expertise lab, Axiology is another capital market infrastructure that permits for extra environment friendly capital market transactions by offering a sturdy buying and selling and settlement system utilizing DLT.
The first customers of the answer can be monetary establishments and their retail traders looking for higher funding alternatives, and enterprise enterprises in search of extra accessible funds.
“Below the brand new regime, people can now commerce tokenized securities straight with one another. Nonetheless, we imagine that specialised brokers are higher suited to deal with the client-facing facet. These brokers are Axiology’s main customers and purchasers,” mentioned Axiology’s Dr. Jurgilas.
“Their worth proposition lies of their skill to boost securities choices and buying and selling phrases for his or her purchasers, which may doubtlessly improve liquidity within the secondary market, particularly for retail traders buying and selling in smaller transaction sizes,” he added.
The Axiology workforce additionally collaborates with Ripple Labs, an American expertise firm that developed the Ripple fee protocol and trade community that supported Axiology improvement with two consecutive grants. Axiology additionally helps Ripple Labs of their CBDC initiatives.