ADDX Digital Stock Exchange Launches Private Market Services for Wealth Managers | AsiaTechDaily
Wealth managers can now introduce more of their end investors to the world of private investments through a new institutional service on digital stock market ADDX.
Corporate treasuries and family offices can also participate in the space through a corporate service to diversify their portfolios through private market products. Both services fall under a new business product line called ADDX Advantage.
Some of the first institutions to join us as partners include StashAway, Southeast Asia’s fastest growing digital wealth manager, and CGS-CIMB, a leading stockbroker in Asia.
Wealth managers using this institutional service can offer their clients fractional access to private market products, further enhancing portfolio diversification away from public market exposure.
This service is intended for brokerage houses, private banks, external wealth managers and multi-family offices. Thanks to a B2B2C model 1 , the service ultimately benefits the asset manager’s end clients, who may be qualified individual investors 2 or institutional investors.
Currently, wealth managers looking to offer private market products to their end clients must negotiate agreements with each issuer separately, a time-consuming process. Being on ADDX means an instant plug-in to a full suite of offerings across multiple asset types.
The use of blockchain and smart contracts on ADDX also allows opportunities to be split down to a minimum of $10,000, from the $250,000 to $5 million typically required to go directly to private market issuers. The lower barrier to entry allows end customers to manage risk by spreading their capital across a variety of products.
Depending on the regulatory licenses held by wealth managers, they can choose between two types of institutional services. They can either execute trades and transfer funds on behalf of end investors, or create sub-accounts on behalf of their end clients and allow clients to take control of their own activity on ADDX.
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