Israel Securities Authority (ISA) announced today that it accepted Simetria’s request for a preliminary ruling allowing the group to launch the first-ever digital securities offering platform in Israel. The decision comes at a perfect time, allowing the Draper Goren Holm-backed platform to officially launch in May of 2021.
Ziv Keinan, Esq. Simetria’s Founder and CEO, said, “ISA’s decision is a dramatic milestone towards the establishment of a digital securities exchange in Israel. Private companies will soon be able to list digital securities for trade on Simetria’s platform to gain liquidity and raise capital. ISA’s decision, published today, brings Israel to the forefront of technology and innovation alongside other countries who already endorse digital securities platforms.”
“Simetria is the first company that delivers the ability to offer digital securities of private companies in the Israeli market,” added Ami Ben David, Simetria’s Chairman. “This decision will enhance the liquidity of assets for shareholders, founders, and employees of private companies, including Israel’s fast-growing tech industry. This will open up share purchase opportunities for Israeli and global financial institutions who are interested in investing in the growth opportunities offered by Israeli startups.”
Simetria has created the first digital securities platform that focuses on private Israeli technology companies. The revolutionary marketplace uses blockchain-based digital securities technology for this undertaking. Simetria also issued a request for a permit that would allow it to settle digital securities using distributed ledger technology (DLT). Simetria allows Israeli companies to list shares on its platform which would then be offered to accredited investors in Israel and around the world.
The CEO of the Israeli Securities Authority, Mr. Oded Spirer, said to Globes newspaper in Hebrew, translated to english: “Digital securities markets are no longer in the distant future, but rather here and now. Israeli Securities Authority is among the first regulators that put on their agenda the establishment of digital securities markets as a goal from understanding the potential that the accelerated technology allows. We congratulate the first steps for the establishments of blockchain-based trading platforms in Israel, and are looking to see additional platforms that would give investors, companies and the Israeli market added value and create the infrastructure for Israel to become a leading global and innovative securities market.
Simetria is the first company in Israel prepared to launch a DLT-based digital securities exchange that transforms the end-to-end lifecycle of private security for both primary issuance and secondary market trading. The exchange will be launched within the Israeli startup ecosystem first, with an international launch to follow. Simetria’s goal is to become the future trading infrastructure of Israel.
“Today marks a monumental win for not only Simetria, but for Israel and the global financial system as a whole,” added Alon Goren, Founding Partner at Draper Goren Holm and Simetria’s earliest backer. “With the nation already being a leading tech behemoth, it is exciting to see their financial regulators leading the global charge toward a world where all shares will be digitized. I am certain that other forward-thinking countries and regulators will be adopting similar stances in the near future!”
Following the conclusions of the report issued by “The Committee for Promoting and Institutionalizing Digital Markets in Israel”, ISA recently published the Memorandum of Securities Law (Designated Exchange) 5780-2020, which paves the way to establish new additional exchanges in Israel.
The memorandum led by ISA and the Ministry of Finance states, “The establishment of one or more designated exchanges with such unique features is designed to expand the investment options available to the public, and the financing options of companies that seek to finance their operations using outside sources. Creating new financing channels for a broad range of corporations is important for the economy, especially in view of the coronavirus crisis, which heightened the need for financing solutions to support businesses’ efforts to return to activity after the economy’s closure. Furthermore, the establishment of designated exchanges will also expand the exposure of Israel’s public investors to additional investment sectors such as high-growth companies in the high-tech sector, to which the major exchange offers limited access”.
Simetria’s full digital exchange will be under the provision of the above legislation. According to the authorization granted today by the ISA in its preliminary ruling, during the first phase of its activity, until the legislation enters into effect, Simetria will operate a bulletin board for digital securities offering DLT settlement.
