Jemma Xu, co-founder and partner at RedBlock Capital, a provider of digital investment services with a presence in Asia, Australia, and the US, says that we now have many technologically advanced securities issuance platforms and secondary exchanges.
However, she points out that technology alone doesn’t address the core requirements of the securities and capital markets.
During a recent interview with the Security Token Group, Xu noted:
“[RedBlock Capital is] focused on maintaining and growing a global ecosystem of investors, broker-dealers, liquidity venues and partners to help us source good assets.”
She explained that the issuance platform is simply there as another tool to support the evolving financial securities ecosystem. Xu confirmed that her firm is currently preparing for future anticipated secondary market liquidity by integrating with compliant secondary exchanges in “key” jurisdictions.
She added that RedBlock is focused on responsibly building the capital markets ecosystem and adopting the appropriate tech infrastructure, so that the company is well-positioned to be “at the forefront of the digital securities space.”
Xu, who has previously worked in investment banking at Macquarie Capital, Australia, said that RedBlock helps firms conduct digital security issuances by leveraging blockchain or distributed ledger technology (DLT).
She told the Security Token Group:
“Our advisory services are supported by our blockchain-powered issuance platform which facilitates an end-to-end process, including KYC/AML, asset creation and issuance, cap table management, shareholder updates, distributions, and multiple capital raises. It is integrated with licensed secondary exchanges globally for future liquidity.”
Xu, a civil engineering and bachelor of commerce graduate from the University of Melbourne, Australia, said that RedBlock doesn’t focus only on “blockchain native” ventures. She clarified that using blockchain tech or DLT does not change fundamental investment principles.
“We assess companies like any traditional VC: team-market fit, customer/user traction, market size, what are their moats and whether using blockchain makes any sense. We prefer early stage companies so we can help them grow rather than just putting in the capital. Our check size can be anywhere from $50,000 to $1 million.”
Xu confirmed that RedBlock’s platform is not limited to securities. It has been developed to handle all types of financial instrument issuances including hybrids, bonds, derivatives, and commodities, Xu said.
“I would like to emphasize the platform is just one part, it’s the network of capital markets players who are key to meet the needs of issuers.”