ADDX, Singapore’s blockchain and smart contract-based digital securities platform, has raised $58 million from mainstream financial institutions to achieve its goal of reducing minimum individual investment through tokenization and segmentation.
The Singapore Monetary Authority regulates ADDX as a digital stock exchange aimed at democratizing the private market. The Pre-Series B funding round was attended by the Thai Stock Exchange (SET), UOB, Nasdaq-listed Hamilton Lane and Thailand’s Krungsri Bank, bringing the total amount raised by ADDX to approximately $120 million.
As explained in the announcement, ADDX uses blockchain technology and smart contracts to tokenize and segment private markets, including pre-IPO stocks, private equity funds, hedge funds and bonds. ADDX can reduce the minimum investment in these private investments through tokenization.
According to ADDX, the platform effectively lowers the private market minimum investment cap from $1 million to $10,000. SET may also appoint directors of ADDX as part of their investment.
ADDX also plans to redirect some of its latest funding to other strategic initiatives, such as expanding partnerships with issuers and supporting the launch of ADDX Advantage, a private market service for asset managers.
Existing shareholders of ADDX include SGX, Heliconia Capital, Japan Development Bank, Japan Investment Corporation, Tokai Tokyo, Kiatnakin Phatra and Hanwha Asset Management.
Relevant: Singaporean Investor Desire for Crypto Is Key to Mainstream Adoption — Survey
A survey conducted by the Independent Reserve, Singapore’s first licensed cryptocurrency exchange, has shown that it has received huge investor support in the region, which could be key to mainstream adoption in the region.
According to Raks Sondhi, Managing Director of Independent Reserve Singapore:
“58% [Singaporeans surveyed] Think of Bitcoin as an investment asset or store of value.”
While nearly 60% of Singaporean investors plan for mass adoption of cryptocurrencies in 2021, 15% of respondents to this year’s survey are starting to consider Bitcoin (BTC) as a real money form.