ADDX Bags $58M To Reduce Min. Private Investment By 10x Via Smart Contracts

ADDX, a blockchain and smart contract-based digital securities platform from Singapore raised $58 million from mainstream financial institutions to fund its goal of reducing minimum private investment sizes via tokenization and fractionalization.

iexclusivenews reports ADDX is a digital securities exchange that attempts to democratize private markets, and it is regulated by the Singapore Monetary Authority.

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This online news outlet understands that the Stock Exchange of Thailand (SET), UOB, Nasdaq-listed Hamilton Land.And Thailand’s Krungsri Bank all participated in the Pre-Series B investment round, bringing the total cash raised by ADDX to roughly $120 million.

ADDX leverages blockchain technology and smart contracts to tokenize and fractionalize private markets.

Including pre-IPO equity, private equity, hedge funds, and bonds, according to the statement.

Through tokenization, ADDX can minimize the minimum investment quantities for such private ventures.

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According to ADDX, the platform effectively lowers the minimum investment threshold in private markets from $1 million to $10,000. SET also gains the right to choose a board member for ADDX as part of the transaction.

ADDX also plans to use some of the new funds to support other strategic objectives, such as increasing its ties with issuers and launching ADDX Advantage, a private market solution for wealth managers.

SGX, Heliconia Capital, Development Bank of Japan, Japan Investment Corporation, Tokai Tokyo, Kiatnakin Phatra, and Hanwha Asset Management are among the company’s current shareholders.

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A study done by Independent Reserve, Singapore’s first regulated crypto exchange, found strong investor interest in the region, which could be crucial to mainstream acceptance.

Factors that contribute to increased investor trust in Singapore. Independent Reserve (source)

Managing director of Independent Reserve Singapore, Raks Sondhi, says:

“58% [Singaporeans surveyed] perceive Bitcoin as an investment asset or a store of value.”

While over 60% of Singaporean investors expect widespread acceptance of cryptocurrencies by 2021, 15% of respondents to this year’s survey believe Bitcoin (BTC) is already a legitimate form of currency.