Nivaura, a U.K. based blockchain start-up, has raised undisclosed amount from Digital Currency Group (DCG), Fineqia International Inc. (CSE: FNQ; OTCPK: FNQQF; FSE: FNQA) and Allen & Overy.
Financial terms were not disclosed. Fineqia said its investment sum represents less than 1% of its market capitalization.
Nivaura is a blockchain company building a new way for automated issuance of financial products under the auspices of the U.K. Financial Conduct Authority’s “sandbox” regime. Its end-to-end system is capable of managing complexities such as onboarding, structuring and execution. The platform can also maintain control of asset administration/servicing to achieve truly vertical integration.
Nivaura recently demonstrated the world’s first crypto-currency denominated bond issuance that was cleared, settled and registered entirely on a public blockchain.
The Nov. 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 will be able to deploy the world’s first fully automated bond issuance and administration platform utilising 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 tokenised to enable blockchain clearing and settlement.
“We’re delighted to back Nivaura, whose pioneering technology can work with existing capital markets infrastructure to optimise it, minimize costs and drive transparency,” said Fineqia CEO Bundeep Singh Rangar. “Nivaura’s founder Avtar S. Sehra is a leading expert on fintech, 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.
photo credit: Nivaura