Archax completes the $1.5m funding raise for Montis Digital

By Joy Dumasia

Archax, the only UK regulated and registered digital securities exchange, broker and custodian, announced that it has completed the first fundraise on its Primary Issuance Platform working with DLA Piper. The oversubscribed round of $1.5m was conducted for its recently announced Montis Digital subsidiary, building blockchain-based market infrastructure for the post-trade ecosystem.

The raise was completed in the context of a wider digitalisation and regulatory compliance project within the FCA’s Innovation Sandbox as part of their Cohort 6. This forms a key part of Archax’s drive to build regulated post-trade services that fully support digital asset processing.

Participants in the raise were onboarded through the Archax website portal. Their holdings were then maintained and recorded in the Archax regulated custody service to be ready for and prove the journey to future digital token issuance. The DLA Piper regulatory compliance platform was also used to automate and assess the regulatory requirements applicable to the raise and create the required legal documents for participating in a digital issuance.

Also, the party to the raise was US broker/dealer GB Capital Markets Inc. acting as placement agent for US investor participants. GB Capital Markets Inc. is a private placement broker-dealer that assists in debt, equity, and digital asset financing arrangements on behalf of its clients.

Graham Rodford, CEO of Archax, said: “In the run-up to our full digital exchange launch, we are proving concepts and testing parts of our platform in advance. Being able to help firms raise capital in as efficient and automated way as possible is a key part of our planned service. Completing this raise alongside leading law firm DLA Piper and working within the FCA Sandbox highlights our capabilities prior to go-live.”