ADDX, a Singapore-based blockchain and smart contract-based digital securities platform, has secured $58 million from mainstream financial institutions to help it achieve its aim of lowering minimum private investment levels through tokenization and fractionalization.
The Singapore Monetary Authority regulates ADDX as a digital securities exchange with the goal of democratising private markets. The Stock Exchange of Thailand (SET), UOB, Nasdaq-listed Hamilton Lane, and Thailand’s Krungsri Bank all participated in the Pre-Series B investment round, bringing the Singapore-based blockchain’s total capital raised to roughly $120 million.
According to the statement, the Singapore-based blockchain tokenizes and fractionalizes private markets, including pre-IPO equity, private equity, hedge funds, and bonds, using blockchain technology and smart contracts. Through tokenization, ADDX can lower the minimum investment quantities for such private ventures.
The technology, according to ADDX, significantly reduces the minimum investment level for private markets from $1 million to $10,000. SET also gains the right to choose an ADDX board member as part of the transaction.
ADDX plans to use some of the new funds to support other strategic objectives
Furthermore, ADDX plans to use some of the new funds to support other strategic objectives, such as increasing its agreements with issuers and launching ADDX Advantage, a private market service for wealth managers.
SGX, Heliconia Capital, Development Bank of Japan, Japan Investment Corporation, Tokai Tokyo, Kiatnakin Phatra, and Hanwha Asset Management are some of the company’s current shareholders.
A study done by Independent Reserve, Singapore’s first regulated crypto exchange, found strong investor interest in the region, which could be critical for mainstream adoption.
Independent Reserve Singapore’s managing director, Raks Sondhi, says:
“Bitcoin is viewed as an investment asset or a store of value by 58% of Singaporeans surveyed.”
While over 60% of Singaporean investors believe that cryptocurrencies will be widely adopted by 2021, 15% of those polled this year believe that Bitcoin (BTC) is now a legitimate form of currency.