Oi-Yee Choo, ADDX
ADDX has raised $58m in a pre-series B funding round that saw several financial institutions come on board as new shareholders: SET Venture Holding, a subsidiary of the SET, UOB, Hamilton Lane, and Krungsri Finnovate, the corporate venture capital arm of Krungsri (Bank of Ayudhya).
The funds will allow the Singapore-based digital securities exchange to scale its operations and the new shareholders will also partner with ADDX on specific projects that will help the exchange expand into new business areas, geographies or market segments, according to ADDX.
Several strategic initiatives by ADDX should also benefit from the fresh capital, including the recent launch of private market services for wealth managers, called ADDX Advantage, efforts to bring on board general partners as issuers, as well as product innovations that aim to bridge traditional finance and digital finance.
“SET is the second stock exchange to join as an investor after Singapore Exchange (SGX), and this is part of a larger global trend over the past two years of exchanges joining forces in a new capital market landscape that emphasises continuity between the public and private markets,” said Oi-Yee Choo, CEO of ADDX.
“The backing of UOB and Krungsri, as well as the private markets investment firm Hamilton Lane, underscores the confidence we have built among important players in the ecosystem,” she added.
SET and UOB join existing shareholders, which include: SGX, Temasek-owned Heliconia Capital, Development Bank of Japan, Japan Investment Corporation, Tokai Tokyo, Kiatnakin Phatra and Hanwha Asset Management.
ADDX is regulated by the Monetary Authority of Singapore (MAS) as a digital securities exchange.
The financial technology company uses blockchain and smart contract technology to tokenise and fractionalise private market opportunities such as pre-IPO equity, private equity and hedge funds, as well as bonds, reducing minimum investment sizes from $1m to $10,000. The resulting efficiencies attempt to bring the benefits of private market investing to individuals, while lowering the cost and fundraising threshold for issuers.
“The partnership with ADDX complements our footprint in our home region of Southeast Asia and Greater China. Our corporate clients will be able to tap new fund-raising channels, while our accredited investor clients will gain access to alternative investments in tokenised assets,” said Leong Yung Chee, head of group corporate banking, UOB.
ADDX is owned and operated by ICHX Tech, which has been approved by MAS as a recognised market operator. It also has a capital markets services license to deal in securities and collective investment schemes as well as to provide custodial services.