Borrowing and Lending in STO space and IX Swap

Borrowing and lending in the private asset or the security token space are hardly available and if they are available, they are only accessible by institutions or high net worth individuals.

Similarly, the STO market products tend to have long lives with long investment tenors which are similar to many private assets, leaving assets idle for long periods of time.

IX Swap intends to roll out borrowing & lending for STOs in the future to provide access to additional capital for the STO ecosystem.

Why does borrowing and lending against illiquid private assets/security tokens make sense?

Access to capital: Investors often need capital at short notice. IX Swap allows investors to unlock the value of their assets and borrow against them for capital.

Diversification: Often, private asset security may take up a large part of their portfolio which may lead to a high degree of concentration risk in their portfolios; On average 35% of family office assets are alternative investments that are illiquid (UBS Family Office 2020 report). Borrowing may help investors by diversifying their portfolios into more liquid assets.

Enhancing returns: When borrowing or leveraging, returns are magnified both positively and negatively. Return enhancement will depend on multiple factors including level of leverage, loan costs, and return on investment. These potential return enhancements would also imply potentially greater losses.

Borrowing and lending in the STO industry will be a big step forward, providing access to capital for the STO ecosystem.

IX Swap is the world’s 1st DeFi AMM & Liquidity Pools for security tokens and tokenized stocks.

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IX Swap is the last infrastructure piece needed to bring life to the security token/tokenized stock industry. IX Swap will revolutionize the STO/TSO industry and is the liquidity solution for all STO/TSO exchanges globally, bridging the gap between CeFi and DeFi.

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