Startup FQX Makes It Possible to Provide Regulated and Decentralized Corporate Finance on Blockchain

Startup FQX Makes It Possible to Provide Regulated and Decentralized Corporate Finance on Blockchain

01 Dec 2022 3 minutes

In the Elevator Pitch blog series, startup companies that are supported or accompanied by SIX introduce themselves. Today you’ll get acquainted with FQX. Co-CEO and co-founder Benedikt Schuppli explains how he and his team aim to revolutionize the way companies are financed.

What Does SIX Do for Startups?

SIX is the founder and principal minority shareholder of the F10 FinTech Incubator & Accelerator and operates its own corporate venture capital fund through SIX FinTech Ventures. In the Elevator Pitch blog series, startups that are backed by SIX FinTech Ventures or which took part the programs run by the F10 FinTech Incubator & Accelerator introduce themselves.

FQX

  • Location: Zurich, Switzerland
  • Founded: 2019
  • Employees: 12
  • Sector: corporate finance

Today’s pitch comes from Benedikt Schuppli, 32, co-CEO and co-founder of FQX. The startup was an award winner at the Swiss Fintech Awards, at the Fintech Germany Award (both 2021), and at the Singapore Fintech Festival (2022). FQX counts among its investors Earlybird Venture, SIX FinTech Ventures, and Circle Ventures – the company behind the top-rated Stablecoin USDC. The startup also took part in the F10 scale-up program.

The successful team of FQX surrounding co-CEO and co-founder Benedikt Schuppli.

The successful team of FQX surrounding co-CEO and co-founder Benedikt Schuppli.

What Does FQX Do?

“We’re a Zurich-based blockchain startup with global ambitions. We want nothing less than to change the way companies can secure financing. Today, for example, if an industrial company wants to issue a bond of 50 million Swiss francs, it’s an incredibly arduous process: Quite a number of intermediaries need to be brought in, from the bank, paying agents and lawyers, through to central depositories – that takes weeks, and is very expensive.

Our solution handles the process in a few minutes, at a fraction of the cost: We connect companies directly with investors by allowing the former to issue debt securities via the blockchain directly to the latter, using what’s known as an eNote. We’re not the only FinTech involved with this, but the massive market potential – the global market for bonds is CHF 100 trillion – shows that we as blockchain startups need to work together. With combined efforts, we are heaving the old world onto the decentralized financial infrastructure of the future. There’s enough room there for multiple players. Where we stand out is the fact that we have a strong legal background – three of our co-founders are lawyers. The more strictly the blockchain is regulated – and that aspect is increasing – the more important it becomes that transactions take place in a secure legal framework. Our solution works in 169 countries worldwide, and our eNotes are recognized and executable throughout.”

We want to change the way companies can find financing – on the blockchain.

Benedikt Schuppli, co-CEO and co-founder of FQX

How Do the Experts at F10 and SIX FinTech Ventures Rate the Startup FQX?

Jonathan Seiler, CFO of F10, explains why he finds the subject of financing on the blockchain is relevant, gives his estimate of FQX’s market potential, and tells why he believes in the startup.

1. Why We Find This Subject Relevant

We believe that blockchain or distributed ledger technology (DLT) is going to revolutionize the way companies can obtain financing. At the same time, we understand the importance of legal compliance. FQX combines both to give companies faster access to liquidity: a digital infrastructure based on DLT and a specially developed legal framework. 

2. Our Estimate of the Market Potential

FQX operates in an extremely large market. At one time or another, almost every company needs outside capital in order to operate efficiently. According to McKinsey, the global supply chain market is worth 17 quadrillion US dollars. 

3. Why We Believe in This Startup

The FQX team is convincing. It combines DLT in a unique way with an in-depth view of the legal position. In addition, we believe that FQX has the requisite entrepreneurial spirit to master the challenge of digital corporate finance worldwide.

SIX FinTech Ventures: We’re on the Lookout for Startups

SIX supports domestic and international startups that are highly scalable, that create added value for the financial centers in Switzerland and Spain, and are independent enough to grow on their own.

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