Why VIX Securities Naming Rights to VIXEX Crypto Exchange Despite Holding Only a 15% Stake
Vietnam’s VIX Securities contributed VND 150 billion (a 15% stake) to establish “VIX Crypto Exchange Joint Stock Company” (VIXEX), which has a total registered capital of VND 1,000 billion. Despite holding only 15% equity, VIX Securities secured naming rights primarily due to brand licensing, its role as a strategic founder, and compliance and risk-management considerations:
1. Brand IP Licensing and Contractual Agreements (Independent of Equity Ratio)
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Brand Ownership: The “VIX” trademark and brand reputation belong to VIX Securities. Vietnam crypto exchange VIXEX’s use of “VIX” as a brand prefix is governed by trademark licensing agreements and shareholder arrangements among the founding partners, which are not tied directly to equity percentages.
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Brand Equity Contribution: Traditional financial institutions often join as cornerstone investors using a combination of brand endorsement and minority cash investments (e.g., 15%), while other founders contribute greater capital or technical infrastructure.
2. Leveraging the Credibility of a Licensed Securities Firm
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Building Market Trust: Newly established crypto exchanges often face credibility challenges. Naming the exchange after a leading local licensed brokerage (VIX + Exchange = VIXEX) significantly enhances its perceived compliance and trustworthiness among retail and institutional investors.
3. Compliance and Risk Firewalls for Traditional Financial Institutions
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Risk Isolation: The crypto market is volatile and evolving regulatory frameworks present risks. As a publicly listed company on the main board (HOSE: VIX), holding a controlling stake (>50%) would require financial consolidation and expose VIX Securities to major regulatory risks.
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15% Strategic Investment: A 15% stake enables VIX Securities to act as a strategic founder and participate in crypto market growth while maintaining a clear firewall against operational and compliance risks.