The Australian fintech company FinClear has announced the launch of FCX, a new digital facility for unlisted securities. The new FCX Fiinclear is based on distributed ledger technology. The company also plans to introduce capital raising tools later this year, and it will be a fully-licensed liquidity venue by 2023. FCX will be run by Dean Jagger, who was formerly the chief executive of the NASDAQ.
Unlike its competitors, FinClear does not compete with the ASX. Instead, it is similar to Nasdaq’s Private Markets platform, which is a stepping stone from the private market to the public markets. The company’s platform will charge the same fees as other capital raising platforms, but it will be a better capital raising tool. For now, FinClear will remain a customer of the ASX.
FCX Australia will also offer a digital wallet to investors. Investors will be able to view their portfolios in this wallet. The digital wallet can also link with public share trading platforms. Some local apps offer this service. If the FCX platform grows and becomes a more widespread platform, it could become a stepping stone for private companies to go public. If you want to invest in FCX, make sure you read the fine print and understand the risks and rewards of the cryptocurrency exchange.
FCX’s debt-to-equity ratio is 56%. Debt is less expensive than equity, and interest payments are tax-deductible. Larger-cap organisations often have less debt than smaller companies. Access to inexpensive financing can give them an advantage over smaller companies. The interest payments on debt are also a good indicator of the sustainability of a company’s debt levels. A ratio of three to six is a good indicator of a company’s ability to cover interest payments.