- RegTech company iSignthis (ISX) has announced it will develop a Delivery versus Payment platform for the National Stock Exchange of Australia (NSXA)
- The technology, known as ClearPay, will provide the necessary platform to enable automation on the NSXA
- Once developed it will be a direct competitor to the ASX’s Austraclear system
- Together iSignthis and the NXSA hope to provide an Australian version of Nasdaq, and become a competitive alternative to the ASX
- An ASX-imposed trading halt has remained in place on ISX since October with shares locked at $1.07
iSignthis (ISX) has announced a deal to develop a delivery versus payment (DvP) system known as ClearPay for the National Stock Exchange of Australia (NSXA).
DvP is a system guaranteeing the transfer of securities only happens after payment has been made – essentially a digital escrow system.
After acquiring a 12.96 per cent share of the NSXA, the company’s inhouse-developed Probanx platform will enter into an agreement with ClearPay valued at $4.5m, to deliver services in approximately 24 months.
ClearPay will offer the DvP platform, integrated payments and identity verification, and will be a direct competitor to the ASX’s Know Your Customer (KYC) and Distributed Ledger Technology (DLT) services, and the ASX’s wholly owned Clearing and Settlement Facility, Austraclear.
ClearPay will provide the necessary platform to enable mass scaling and automation of NSXA, and claims it will provide distinct advantages to the NSXA over the proposed ASX DLT platform.
ClearPay will operate and leverage the DvP platform for NSXA, as well as for other market operators, subject to commercial agreements and licensing.
iSignthis Managing Director and CEO John Karantzis says the ISX deals with the NSXA are in the aim of “develop[ing] an Australian version of Nasdaq, and becom[ing] a competitive alternative to the ASX”.
iSignthis stocks have been in a trading halt since October – resulting in legal action between the company and the ASX.
The share price remains locked at $1.07.