CMC Markets the margin trading and multi-asset investing platform, has taken another step towards its goal of becoming a diversified Fintech, by acquiring a 33% stake in Strikex Technologies, a customer-focused blockchain solutions business.
CMC Markets has acquired a 33.0% stake in StrikeX, however, neither company has disclosed any financial details about the transaction.
Though the investment has been described by CMC as being made at arm’s length, and it sees the deal as a part of the formation of a partnership with StrikeX Technologies.
Strikex Blockchian Solution Technologies
StrikeX has expertise in the tokenisation and custody of digital assets.
Tokenisation is the process through which assets or sensitive data are substituted with a unique digital token, which can then be freely transmitted or traded, without the possibility of hacking or theft of the underlying.
Using this process tokenised securities could be traded between counterparties, with these transactions matched and settled via a blockchain.
Alternatively, tokenised data could be used as part of a secure end-to-end payments system, but there are likely to be many other applications for the technology.
CMC Markets Enters Blockchain
CMC Markets believes that taking a stake in StrikeX will provide them with access to the latest blockchain-related products and services.
Speaking about the investment CMC Market CEO Lord Cruddas said:
“This is a major strategic investment in the growing Web 3.0 technology space of which StrikeX Technologies gives us access to the very best technology and advancements. StrikeX is a brilliant, young dynamic company with a very talented team that has its finger on the pulse of fast-moving technologies”
“We are all very excited about working together as we continue to diversify our business with the latest technology, products and wallet settlement.”
StikeX Technology was founded in 2021 by a team of traders, technologists and front-end developers, to ensure that anyone anywhere had the tools to be able to “reap the benefits” of blockchain technology.
Joe Jowett the CEO and Co-founder of StrikeX said of CMC Markets Investment:
“Our partnership with CMC Markets sets out to bolster our position as early frontrunners in this dynamic and fast-moving industry, whilst validating our long-term vision and strategy”
“We strive to pioneer the delivery of traditional financial instruments, such as equities, commodities, and bonds to the blockchain, whilst guaranteeing security, compliance, and ease of access via intuitive, secure, and user-friendly products.”
Blockchain technologies, such as those being developed by StrikeX, have the potential to revolutionise securities markets and trading, by making them more accessible, while shortening settlement cycles and increasing the balance sheet efficiency of market participants.