Digital stock exchange ADDX, backed by Temasek, has launched a new service to enable wealth managers to trade private investments.
ADDX, a digital stock exchange backed by Singaporean public investment firm Temasek Holdings and Singapore Exchange (SGX), is introducing a new institutional service allowing wealth managers to access private market products through fractionation, the company said. company in a press release.
The exchange will use blockchain and smart contracts to split its securities at a minimum investment of $10,000, growing from the $250,000 to $5 million usually needed to access private market games directly from the issuer, the exchange says. communicated. ADDX reduces costs by automating manual processes.
Target Family Offices and Wealth Managers
The new institutional product, called ADDX Advantage, will be available to wealth managers, and corporate treasuries and family offices will also be able to use the enterprise version of the service, ADDX said, adding brokers, private banks, external asset managers and multi-family offices. also be targeted. End customers can be accredited individual investors or corporate investors, ADDX said. Wealth managers can both transact and transfer funds on behalf of end investors, or create sub-accounts that end clients can manage themselves, ADDX said. Investors will be able to access offers on multiple types of assets, according to the statement.
CGS-CIMB brokerage and StashAway, a Southeast Asia-based fintech digital wealth manager, have already stepped up as partners for the product, ADDX said.
Oi Yee ChooCEO of ADDX, said addressing “pain points” for corporate investors and family offices to access private markets will broaden and diversify the exchange’s investor base.
Attract more issuers
“This will allow us to better attract high-quality issuers to list on ADDX knowing there will be sufficient investor demand. As an exchange, our goal is to ensure a critical mass of issuers and investors at the table, so that capital can find attractive investment projects, and vice versa,” she said. in the press release.
Currently, ADDX’s platform offers assets in private equity, venture capital, private debt, real estate, hedge funds, cryptocurrency funds, and structured products.
Since being licensed by the Monetary Authority of Singapore (MAS) as a private market exchange in early 2020, ADDX has listed 26 transactions on the platform, according to the statement. The deals have included Investcorp, UOB, CGS-CIMB and entities owned by Singapore’s state-owned investment firm Temasek Holdings, such as Mapletree, Azalea and SeaTown. The ADDX hosts asset classes including private equity, venture capital, private debt, real estate, hedge funds, funds exposed to cryptocurrency, and structured products, according to the release.
The exchange, owned and operated by ICHX Tech, raised $50 million in a Series A round in early 2021. Its investors include SGX, Temasek subsidiary Heliconia Capital, and Japanese investors JIC Venture Growth Investments ( JIC-VGI) and the Development Bank of Japan (DBJ). Other shareholders include South Korean company Hanwha Asset Management, Japanese company Tokai Tokyo Financial Holdings and Thai company Kiatnakin Phatra Financial Group.