VIVA Investment Partners hosted a live-streamed Briefing on the Future of Digital Securities on the 10th of June 2020 with Tal Elyashiv, founder and Managing Partner of SPICE VC, the leading venture capital fund in the digital securities ecosystem and several of their portfolio company CEOs.

1. Follow the event on Twitter #FTEBriefing #DigitalSecurities #SpiceVC

3. • 15:00 (CET) – 15:05– Welcome and Introduction to our speakers
• 15:05 – 15:45 - Each of our speakers shares his/her vision on the
Future of Digital Securities and how their firms are tackling the
opportunity
• 15:45 – 16:15 – Panel Q&A hosted by Julie Meyer
• 16:15 – 16:30 – Q&A from participants

4. • 15:05 – 15:15 – Tal Elyashiv, Co-Founder & Managing Partner of Spice VC
• 15:15 – 15:25 - Jamie Finn, President & Co-Founder of Securitize
• 15:25 – 15:35 – Julian Kwan, CEO of InvestaX
• 15:35 – 15:45 – Simon Barnby, CMO of Archax

6. www.spicevc.com
Diversified Access to the Digital Ecosystem

7. 7
WHAT IS SPiCE VENTURE
CAPTIAL?SPiCE is a closed end venture capital fund with a portfolio of
companies building the ecosystem of the tokenization industry.
SPiCE invests globally in platforms and ecosystem
providers enabling access to capital markets, banking,
real estate, and other industries enhanced through
Blockchain technologies.
We seek companies who stand to benefit
the most from the massive growth of the
industry.

8. 8
#1: DIGITAL SECURITIES - HUGE MARKET
POTENTIAL
REAL ESTATE
$217 Trillion
COMMERCIAL
AGRICULTURE
RESIDENTIAL
DEBT
$215 Trillion
DEVELOPED
MARKETS
EMERGING
MARKETS
DERIVATIVES
$544 Trillion
BITCOIN
$180 Billion
STOCKS
$544 Trillion
UK
JAPAN
CHINA
EURO US
RoW

9. 9
#2: THE DIGITAL SECURITIES
INDUSTRY IS STILL YOUNG
•Industry is growing rapidly
•No Standards
•Regulation is changing
•Underlying technology is evolving
•Lots of noise and “fake news”
•Many players won’t make it. Some will
become Unicorns

10. 10
#3: THE SECURITIES ECOSYSTEM
IS COMPLEX
•Highly regulated industry
•Regulations are local
•Many existing ecosystem players and roles
•Much of what moves the industry is institutional
money

11. 11
#4: SHIFT HAPPENS - RETAIL TO
INSTITUTIONAL
Initial motivation for Digital Securities was liquidity for
non-liquid assets and increased access.
Now, major banks and institutional players are
moving into the industry recognizing its
superiority to the current way securities are
issued managed and settled.

12. 12
#5: LIQUIDITY IS COMING…
• More regulated marketplaces under way
• More digital securities offering
• “Higher Value” digital security offering
• Entrance of institutional players
• Public offering of digital securities
• Further regulation evolution
Together with industry growth:

13. www.spicevc.com
Diversified Access to the Digital Ecosystem

25. 10 June 2020
www.archax.com
Archax introduction
A global digital securities exchange
Trading | Custody | Brokerage
Simon Barnby
Chief Marketing Officer

26. Archax – a global, regulated market
for tokenised assets
“The Archax exchange, along with its brokerage
and custody service, will not only unlock liquidity
and create secondary markets for assets that
are hard to trade, but also disrupt all traditional
capital markets – particularly in post-trade.”

27. What are digital securities / security tokens?
Traditional Securities
Hours/Days 9/5
Market Local
Settlement Slow
Workflow Integration Integrated
Ownership Register Maintained by 3rd party
Regulation Regulated
Compliance Manual
Existing Crypto/
Utility Tokens
24/7
Global
Fast
Partial integration
Maintained by exchange
Unregulated
Manual
Digital Securities
24/7
Global
Fast
Partial integration
Maintained by 3rd party
Regulated
Smart contract enforcement

28. Traditional exchange trade
Issuer
Registrar/Stock Transfer
Agent
Central Securities
Depository
Clearing House
ExchangeBroker Broker
Prime Broker/
Custodian
Prime Broker/
Custodian
EMS/OMS EMS/OMS
Investment Manager
(BUYER)
Depositary
Liquidity Provider
(SELLER)
Depositary
Administrator AdministratorRegulator

29. Crypto exchange trade
Crypto ExchangeBroker Broker
EMS/OMS EMS/OMS
Investment Manager
(BUYER)
Liquidity Provider
(SELLER)

30. Depositary
Digital security exchange trade
Issuer
Registrar/Stock Transfer
Agent
Central Securities
Depository
Archax
Investment Manager
(BUYER)
Administrator Regulator
Liquidity Provider
(SELLER)
Administrator
Clearing House
Broker Broker
Prime Broker/
Custodian
Prime Broker/
Custodian
EMS/OMS EMS/OMSDepositary
= blockchain node

31. The Archax solution
Regulated digital asset custody
service
Experienced team from traditional
financial markets
Proven institutional exchange
technology with full market surveillance
London based,
FCA regulation in Q2 2020
Integrated into existing trading
platforms & workflows
Listing global digital
securities/security tokens
Global, round the
clock trading
Institutional & retail brokerage
services

32. The emerging digital securities ecosystem
The Archax exchange sits at the very heart of digital securities ecosystem
Primary Issuance
» Distribution of
tokens to
market
participants
» Investor
suitability &
KYC/AML checks
» Investor
onboarding
Tokeniser
» Selection of
protocol
» Coding smart
contract
» Incorporate
token
parameters
» Set whitelist
requirements
Registrar
» Maintains
underlying
shareholder
register
» Handles
information
from secondary
trading
Administrator
» Controls
processing
of corporate
actions
» Works with
registrar to
provide
information
to token holders
Secondary
Market
» Global 24x7
trading
» Direct links to
Institutions &
professional
investors
» Retail flow
through brokers
» Handles
updates to
issuer, registrar
& administrator
» Provides
regulated
custody
Issuer/Asset
owner
CSD
» ‘Golden source’
of books &
records
» Liable for any
anomalies in
issued amounts
» Receives
information
from approved
custodians –
such as Archax

33. A global trading venue
Archax provides a truly global trading venue with broad investor reach
RetailBrokers
Investment
Banks
Market Makers/
Liquidity Providers
Asset Managers/
Hedge Funds
Sophisticated
Investors
Prop Desks
& HFTs

34. Archax partnerships
Services
Tokenisers & Issuance
Investors Technology

35. Tokenisation roadmap
Illiquid
» Property
» Private equity funds
» SMEs
» Art
» Race horses
» Container ships
Semi-liquid
» Hedge funds
» Listed SMEs
» Debt
Liquid
» Listed securities
» Commodities
» Other traditional instruments
Efficiency
Capital Raising
Liquidity
Liquidity Spectrum
Time
BenefitsAssetClass

36. The tokenisation pipeline
Asia
11%
Europe
29%
North America
35%
Other
6%
UK
19%
DIGITAL SECURITIES BY REGION
Fund
28%
Other
14%
Real Estate
21%
Equity Raise
37%
DIGITAL SECURITIES BY ASSET CLASS
Total STOs Total Value Already Raised
c. 400 c. $10bn c. $600m

37. The tokenisation opportunity
Ultimately all asset classes, globally
?
All other assets
» Art
» Race horses
» Shipping
» Royalties
» Etc.
?
Conceptual
None
Fully digitalised
Some digital issuances

38. www.archax.com
Archax Introduction
Simon Barnby - CMO
Thank you

41. Tweet about the event using #FTEBriefing #FleetManagement #ODODrive
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