- Founder and CEO of iSignthis (ISX) John Karantzis has been appointed interim-CEO of NSX Limited
- The business relationship began between the two companies when iSignthis bought a roughly-13 per cent holding in NSX last month
- Now, the companies are joining forces to create the ClearPay joint venture
- ClearPay is designed to rival the ASX’s Austraclear service
- With John at the helm of both companies, he says the creation of ClearPay will now be more efficient
- iSignthis has been bashing heads with the ASX since shares were suspended back in October 2019
- Shares are yet to reopen for trade, worth $1.07 when they were locked up on October 1
Payment security company iSignthis (ISX) is moving fast in its new relationship with the NSX, with John Karantzis now at the helm of both companies.
iSignthis started getting cosy with the NSX last month when it snatched up a 12.96 per cent holding in the operator of the National Stock Exchange of Australia (NSXA).
Since then, the two companies have inked up a deal to parent a new joint venture company, ClearPay, to rival the ASX’s Austraclear service.
Today, iSignthis founder and CEO John Karantzis sent a letter to shareholders revealing that the business relationship has been taken to the next level: John has been appointed interim CEO of the NSX.
“It was agreed with the board of the NSX that my appointment as interim CEO would allow the joint venture to be more efficient in delivering ClearPay,” John said in his letter to shareholders.
Previous Interim CEO Tom Price stepped down from the position on Wednesday, and John took the wheel yesterday.
It’s likely no surprise that the iSignthis management team is getting up-close-and-personal with a new share market operator considering the five-month scuffle between ISX and the ASX.
In October 2019, iSignthis shares were suspended based on some “explain yourself” queries from the ASX. Since then, the two companies have shared myriad questions and answers but iSignthis has not been able to satisfy the ASX.
In December, iSignthis took the fight to the Federal Court, with the court battle ongoing since then.
In fact, it seems the creation of ClearPay is a direct challenge to the operator of the Australian Securities Exchange.
John told shareholders this afternoon ClearPay will run on a blockchain-enabled Delivery versus Payment (DvP) platform to challenge the Austraclear monopoly. A DvP platform primarily means the transfer of securities only happens after payment has been made.
With a focus on emerging fintech companies, ISX and NSX plan to offer different financial products to the ASX while still competing on company listings.
“My role at the NSX is principally strategic, but I will also be responsible and accountable for the organisation as interim CEO. From an ISX perspective, my appointment means that I can focus on achieving results for both the NSX and ISX, as well as our shareholders, in a time-efficient manner,” John said.
John will work with iSignthis Chief Technology Officer Michael Andrewes to begin building ClearPay.
Today’s letter, however, made no mention of the issue at the forefront of shareholders’ minds since October — when, if at all, shares will be released from lock-up. While no fresh news of the court case is available, the company is likely happy to keep shares quarantined from some historically-poor weeks on the ASX.
With the local share market officially treading in bear territory, having shares unavailable for selling might be an ironic blessing for iSignthis. Shares in the company last traded on October 1 2019, for $1.07 each.