MoneySwap Plc (LON:SWAP), a developer of an innovative peer-to-peer forex trading platform, today joined London’s AIM market with a £3 million placing that gives the company a market value of £20 million.
Through the development of its online currency exchange platform, called MSEx, and its web-based clearing house, known as MSPCH, MoneySwap aims to become ‘the future of foreign exchange’.
“Through the MSEx, individuals and businesses can trade currencies directly with each other at competitive market rates, with low fees and no minimum quantity,” the company said in a stock exchange statement.
At present MoneySwap effectively operates as a market maker. It matches both buyers and sellers, and then facilitates the transaction, by providing settlement and carrying out international money transfers.
But in time, as volumes grow on the MSEx, MoneySwap expects that its online exchange facility will enable more direct peer-to-peer trading, whereby its users will trade currencies among themselves.
Importantly, for such an ambitious business plan, MoneySwap’s clearing system is backed by a number of major financial institutions. The group’s principal banking relationships are with Barclays in Europe, DBS Bank in Singapore and with Standard Chartered, Hang Seng Bank and HSBC in Hong Kong.
All payments into and out of MSEx are made through the MSPCH clearing house, which is connected to the global SWIFT network.
At present on the MSEx, the following currencies can be traded: UAE Dirham, Australian Dollar, Canadian Dollar, Swiss Franc, Euro, Sterling, Hong Kong Dollar, Japanese Yen, Singapore Dollar, New Taiwanese Dollar and US Dollar.
MoneySwap’s initial focus is the Asia-Pacific market. It says it is targeting this region because of the substantial foreign exchange volumes and number of currencies that are traded there.
Some of the main sectors that MoneySwap will target are gaming and travel, network marketing sites, migrant labour remittances and import/export businesses. It is already understood to be working with a number of Asian casino operators.
Aside from the MoneySwap Currency Exchange (which encompasses both the MSEx and MSPCH), the company is also preparing to launch another service later this year.
The launch of the ‘QuickPayIT’ service is pencilled in for the third quarter of this year. According to MoneySwap, this new service will provide a secure online payment mechanism that will allow individuals to pay merchants for goods and services, without either party providing or receiving banking information to each other.
Through today’s listing MoneySwap has issued 62.5 million new shares – which represent about 15 per cent of the total equity – priced at 5 pence each. The company believes that its listing on the London Stock Exchange will enhance its credibility and its perception among potential clients.
"We are delighted to be bringing MoneySwap onto London Stock Exchange’s AIM market,” said chief executive Richard Proksa.
“The LSE has an exceptional standing in the minds of Asia Pacific businesses and we see great competitive local advantage in being able to demonstrate that our company, processes and management team have all met the stringent requirements set by the LSE.
“We now look forward to growing our client base and revenues in our chosen markets across the Asia Pacific region.”