ADDX pockets $58M to reduce minimum private investment by 10x via smart contracts

ADDX pockets M to reduce minimum private investment by 10x via smart contracts

ADDX, a blockchain and smart contract-based digital securities platform from Singapore, has raised $58 million from conventional financial institutions to fund its goal of reducing the minimum size of private investments through tokenization and fractionalization.

The Monetary Authority of Singapore regulates ADDX as a digital stock exchange that aims to democratize private markets. The pre-series B funding round saw the participation of the Stock Exchange of Thailand (SET), UOB, Nasdaq-listed Hamilton Lane, and Thai bank Krungsri, bringing the total funds raised by ADDX to of about USD 120 million.

As explained in the announcement, ADDX uses blockchain technology and smart contracts to tokenize and fractionate private markets, including pre-IPO equity funds, private equity and hedge funds, and bonds. ADDX can lower the minimum investment sizes for such private investments through tokenization.

According to ADDX, the platform effectively lowers the minimum investment threshold of private markets from $1 million to $10,000. Additionally, as part of the investment, SET is entitled to appoint a member of the ADDX board of directors.

Furthermore, ADDX intends to redirect some of the latest funding to other strategic initiatives, such as expanding partnerships with issuers and supporting the launch of ADDX Advantage, a private market service for wealth managers.

Current ADDX shareholders include SGX, Heliconia Capital, Development Bank of Japan, Japan Investment Corporation, Tokai Tokyo, Kiatnakin Phatra and Hanwha Asset Management.

A survey conducted by Singapore’s first licensed cryptocurrency exchange Independent Reserve revealed huge investor support from the region, which could be key to widespread adoption in the region.

Factors to increase confidence among Singapore investors. Source: Independent Reserve

According to Raks Sondhi, managing director of Independent Reserve Singapore:

“58% [los singapurenses encuestados] perceive Bitcoin as an investment asset or a store of value.”

While nearly 60% of Singaporean investors anticipated wide-scale adoption of cryptocurrencies in 2021, 15% of respondents this year began to view Bitcoin (BTC) as a real form of money.

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