ADDX (formerly iSTOX), the Singapore-regulated exchange for blockchain-based security tokens, raised $58 million (USD), bringing its cumulative funding to nearly $120 million. Major new investors in the pre-Series B round include the venture capital arms of Thailand’s SET stock exchange and Thailand’s third-largest bank Krungsri as well as Hamilton Lane and UOB. Singapore Bank UOB recently partnered with ADDX to issue a $100 million token bond for SingTel.
The digital securities startup already has a top tier set of investors across Asia, including the Singapore Stock Exchange (SGX) and state-owned Temasek’s investment arm, Heliconia Capital. Its backers span Japan and Korea, including the Development Bank of Japan, Tokai Tokyo Financial, and Korean firm Hanwha Asset Management, among others.
One of the main goals of tokenization is to reduce barriers to entry, making fundraising cheaper and reducing the minimum investment amount. Assets tokenized include private company stocks, bonds, hedge funds and real estate, and ADDX processed $150 million in transactions in 2021.
“This investment underscores our belief in the attractive opportunity to provide private market investment to the non-institutional channel,” said Erik Hirsch, Vice President and Head of Strategic Initiatives at Hamilton Lane.
However, while making investing easier, ADDX only targets accredited investors.
“SET is the second exchange to join as an investor after SGX, and it’s part of a larger global trend over the past two years of exchanges joining forces in a new capital market landscape that puts the emphasis on continuity between public and private markets,” said Oi-Yee Choo, CEO of ADDX.
Meanwhile, SET is preparing to launch the Thai Digital Assets Exchange (TDX) in the third quarter, after receiving a license at the end of March. SGX is also involved in tokenization through MarketNode, its digital asset joint venture that initially targets bonds.9Any suggestions