Fineqia invests in blockchain firm Nivaura
FINEQIA INTERNATIONAL Inc. has made a cash investment for an equity stake in Nivaura, which recently demonstrated the world’s first cryptocurrency-denominated bond issuance that was cleared, settled and registered entirely on a pub lic blockchain.
Fineqia joins New York-based Digital Currency Group (DCG), the world’s top investor in blockchain companies in 2017 according to market research firm CB Insights, in Nivaura’s first institutional financing round. Allen & Overy, the world’s eighth-largest law firm by revenue according to American Lawyer, also invested in Nivaura. Both received minority equity interest in Nivaura.
Fineqia will be able to deploy the world’s first fully automated bond issuance and administration platform utilizing Nivaura’s technology at significantly lower cost than existing channels. Issuers will be able to structure, execute and administer legally enforceable bond contracts using public blockchain infrastructure. To meet current client requirements, the bonds will be denominated in fiat currency. The cash held in Nivaura’s client money accounts will , however, be tokenized to enable blockchain clearing and settlement.
“We’re delighted to back Nivaura, whose pioneering technology can work with existing capital markets infrastructure to optimize it, minimize costs and drive transparency,” said Fineqia chief executive officer Bundeep Singh Rangar. “Nivaura’s founder, Avtar S. Sehra, is a leading expert on fintech [financial technology], cryptocurrency and blockchain in Europe and has worked closely with Fineqia for several years.”
Fineqia will take advantage of its recent shareholding in PremFina to issue secured premium finance debt securities. Premium finance eliminates the financial strain of lump sum upfront payments for insurance, thereby promoting financial inclusion within the insurance industry. Nivaura is a United Kingdom fintech start-up set up in July, 2016, that is building a new way for automated issuance and administration of financial instruments under the oversight of the United Kingdom’s Financial Conduct Authority. A key element of Nivaura’s technology is its legal markup language (LML), which enables the conversion of standard legal contracts into machine-readable formats.
The November, 2017, bond issuance that was conducted using Nivaura’s technology took place in Fuse, a tech innovation space based in the London office of Allen & Overy.
Fineqia’s investment sum represents less than 1 per cent of its market capitalization. Terms of the investment remain confidential.
About Fineqia International Inc.
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Martin Charles Bernholtz, Brij P S Chadda, Dinesh Dhamija, Martin Graham, Warwick Hill, Stephen John McCann, Bundeep Singh Rangar
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