Fintech firm Globacap has become "the UK's first fully regulated digital security offering and administration platform” after exiting the Financial Conduct Authority’s (FCA) regulatory sandbox. The company uses blockchain technology to "simplify and streamline" the issuance of digital tokens (which function as legal securities). It also assists with capital raising.
During the sandbox programme, Globacap tested equity tokenization and transferring ownership under the FCA's watchful eye. It digitalised its own shares in 2018, and this year, it did the same for two British companies. Per the press release, Globacap played the role of a regulated arranger and custodian while they raised funding and was responsible for their digitalisation.
“The Sandbox programme has been a great experience, enabling us to come to market with a new application of an emerging technology in a controlled but quicker manner,” said Myles Milston, CEO of Globacap. “The support from the Innovate Team at the FCA was instrumental in the success of this journey.”
Globacap tested its solutions as part of the FCA’s regulatory Sandbox Cohort 4. The share, bond, or fund interest it issues fulfill “the legal requirements of a transfer of ownership.”