R3, custodian Hex Trust to help Asian banks sell security tokens

The custodian began working with R3 when one of its clients issued collateral tokens for derivatives on Corda, according to CoinDesk. Hex Trust will integrate with R3 through the Corda software development kit (SDK) for tokens that was released in July 2019.

Hex Trust’s technology was built with banks and other traditional financial institutions in mind. It offers hardware security modules from IBM, relates to the SWIFT payment network, and has integrated with the top 10 blockchain protocols by market capitalisation.

Hex Trust also has a trust company license and holds a trust or company service provider (TCSP) license under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance in Hong Kong. The custodian is entering the Monetary Authority of Singapore sandbox and applying for the capital markets custody license in Singapore. It’s also been provisionally authorised by BaFin - Germany's Financial Supervisory Authority to provide crypto custody services and is applying for the crypto custody license in Germany as well.

The Hong Kong company expects to see more demand for security tokens as Hong Kong and Singapore open up sandboxes for exchanges to trade such assets and as other European Union countries develop new licensee frameworks for crypto custody.