GlobexUS Holdings, Corp. (“Horizon” or the “Company”) is a financial technology (FinTech) and software company that creates next generation digital systems for:
2. Regulated exchanges (traditional and digital); and
3. Specialized marketplaces (ex. Global Fan Exchange “GFX”).
The Company designs, developments, and produces proprietary prepackaged trading software for regulated digital asset exchanges and marketplaces. Horizon also operates its trading software in such digital marketplaces on behalf of regulated entities that include banks, broker dealers, sovereign governments and other regulated entities. Horizon’s revenue is generated by a SAAS (Software-as-a-Service) model that is based on perpetual revenue-share agreements with each customer in exchange for licensing its software, and for the compliant operation of the 1) trading, 2) clearing, 3) data and 4) listing services for each of the Company’s digital asset exchange licensees. The company generates both subscription income (annual or monthly) and transaction income (volume and activity)
In the US, Horizon is the exclusive provider of digital asset trading services to the FINRA+SEC regulated broker-dealer, TriPoint Global Equities and its proposed Alternative Trading System, (the “TriPoint ATS”) that is waiting for imminent approval with US regulators. This ATS will be a technologically advanced system for digital trading and is designed for the next generation of smartphone-based (mobile) trading.
In the international markets, Horizon has:
1. Contracted with The Antigua and Barbuda Ministry of Finance & Corporate Governance (MFCG) to build, power and operate a digital securities marketplace and plans to secure an MiFID II Investment Firm license to form and operate as an EU Multilateral Trading Facility to service EU issuers & investors;
2. Created a primary issuance and secondary exchange for Piemonte Holding de Participações S.A. (“Piemonte”), an A-rated Brazilian bank which develops and manages tailor-made investment products. Piemonte completed the first ever secondary trade of a fractionalized bond on Ethereum using Horizon’s compliance, custody and blockchain trading solutions; and
3. Developed a strong pipeline of potential clients and business in numerous jurisdictions.
• Market: In 2018, operators of regulated exchanges and clearing houses generated revenues of $55bn worldwide1. Horizon estimates the long-term market growth potential of trading and clearing to 3.5% pa and the Company expects to significantly outgrow the market as the world moves to digital assets through 2025 and beyond. Horizon management expects to claim 0.25% of global market-share.
• Business Model: Horizon’s business model is comparable to the world of traditional markets like that of Intercontinental Exchange (NYSE:ICE). ICE is a global operator of twelve (12) traditional/analog regulated exchanges, six (6) clearing houses and four (4) OTC markets, and is a leading provider of data services for financial markets/traders leveraging its proprietary, in-house technology. Horizon is also building a proprietary ecosystem to power its global set of digital asset markets and exchanges.
• Moat (durable competitive advantage of a company):
$55 Million invested, eight (8) years development: Horizon’s development team has been together since January 2012 building the Horizon trading & compliance core components. The Company has produced three (3) million lines of code. The Horizon methodology, and the inherent difficulty in replicating or directly competing with such an extensive solution-set, is what makes this one of the most exciting software platforms in the digital securities fintech space.
Scale and scope: Horizon’s two business segments benefit from scale and scope advantages of sophisticated trading technology and software. With nearly 3.0 million lines of code the Horizon solution allows the Company to target the growing digital asset space. The total offering package from Horizon is unmatched by their competitors. The completeness of the technology stack, the low-cost nature of the Horizon software licensing and operations model, and Horizon’s advanced technology are expected to be positive margin drivers.
Network effects: Horizon’s exchanges generate trading volumes that attract further users and volumes in a virtuous circle. Typically, volumes concentrate on one dominant exchange, leaving users with no choice but to trade on that exchange. As a result, the exchange benefits from a near-monopolistic situation in both trading and the associated non-replicable data services generated by the exchange.
Switching costs: Horizon is alone among its peers in providing an integrated issuance, KYC, AML, custody, trading and data service including analytics for pre-trade, trade execution and post-trade processing. This reduces complexity and cost for the customer. Horizon believes this full solution will allow them to both win a greater share of wallet-activity and acquire “sticky customers” due to switching costs.
A private placement and digital rating agency service sponsored by Entoro Capital.