Securitised equity tokens to start trading on household names as early as Q1 2019
Singapore, Singapore – September 12, 2018 —
Firm announces securitised equity tokens to start trading as early as Q1 2019. Nicknamed “Crypto Depository Receipts”, the tokens adapt American Depository Receipts to modern financial markets.
A firm called CDRX has designed an approach to securitisation that fits seamlessly into existing legal and technology frameworks. By buying equities in existing markets, placing them with a depository bank or trust, and then issuing tokens legally backed by the underlying assets, CDRX is delivering securitised tokens to global investors. Crucially, direct participation from issuers is not required, opening the entire financial market to conversion based on investor demand.
The CDR tokens contain functionality to allow corporate and governance actions to be conducted by issuers ‘on-token’, meaning dividends and voting can be executed at “near-zero” cost, and aligning CDRs with snowballing corporate demand for cheaper and more efficient ‘virtualised’ AGMs. CDRX sees savings of as much as 95% per year for issuers and investors alike.
CDRX CEO, David Ward, expressed his enthusiasm for spreading developments in financial markets, saying “It has been more than a year since we first adapted American Depository Receipts to create a bridge between incumbent and developing technologies. We are gratified to see large broker/dealers also now embracing our idea. ADRs are a 90-year-old proven and trusted approach, which when combined with technologies perfect for use in financial markets, will drastically increase efficiencies for investors and issuers alike. We are at the forefront of these developments and subject to regulatory approvals, look forward to launching CDRs on household names, in selected jurisdictions, from early 2019.”
In addition to the CDR product, CDRX is seeking regulatory approval for an enterprise grade trading platform, supporting institutionally recognised settlement and custody options, allowing direct participation of broker/dealers and asset managers.
CDRX’s announcement comes alongside wider adoption of the ADR model, including a recent announcement from Citibank, outlining “Digital Asset Receipts” (DARs) on bitcoin. The first ADR was issued in 1927 by JP Morgan.
CDRX has offices in London and Singapore, includes veteran bankers from Goldman Sachs, JP Morgan, Merrill Lynch, HSBC and UBS, and is backed by a global hedge fund and an Asian family office.
Visit https://www.cdrx.io for more information
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