A blockchain and smart contract-based digital securities platform ADDX successfully raised $58 million from mainstream financial institutions. It intends to use the funds to reduce minimum private investment sizes through tokenization and fractionalization.
ADDX is regulated by the Monetary Authority of Singapore as a digital securities exchange. The regulator wants to democratize private markets. ADDX uses blockchain technology and smart contracts to tokenize and separate private markets. This includes private equity, pre-IPO equity, bonds, and hedge funds. The platform, via tokenization, can reduce the minimum investment sizes for private investments. It effectively brings down the private markets’ minimum investment threshold from $1 million to $10,000. Moreover, the Stock Exchange of Thailand (SET) becomes entitled to designate a board member for the Singapore-based company.
In its latest Pre-Series B funding round, ADDX saw participation from SET, Nasdaq-listed Hamilton Lane, UOB, and Krungsri Bank. This round brought total funds raised by the firm to around $120 million. ADDX is looking to redirect some of the latest funding to other strategic initiatives, such as expanding partnerships and supporting the launch of ADDX Advantage – a private market service for wealth managers.
Furthermore, a survey by Independent Reserve highlights tremendous investors’ support in Singapore. Experts attribute this to mainstream adoption in the region. Raks Sondhi, the managing director of Independent Reserve Singapore, pointed out that 58% Singaporeans surveyed, regard Bitcoin as an investment asset or a store of value. About 60% of respondents envisioned mass-scale adoption of cryptocurrencies in 2021, while 15% consider Bitcoin as a real form of money.