ADDX Receives $58M in Funding to Lower Minimum Barriers to Private Placements by 10 Times Through Smart Contracts

ADDX, a blockchain and smart contract-based digital securities platform from Singapore, raised $58 million from mainstream financial institutions for the goal of reducing the minimum private investment size through tokenization and segmentation.

ADDX aims to democratize the private placement market, and the Monetary Authority of Singapore regulates ADDX as a digital securities exchange. The Stock Exchange of Thailand (SET), United Overseas Bank (UOB), Nasdaq-listed Hamilton Lane and Thailand's Krungsri Bank participated in the Series B round, bringing ADDX's total funding to around $120 million.

According to the announcement, ADDX uses blockchain technology and smart contracts to tokenize and segment private equity markets, including pre-IPO equity, private equity, hedge funds, and bonds. ADDX can reduce the minimum investment size for such private placements through tokenization.

ADDX says the platform has effectively lowered the minimum investment threshold for private placements from $1 million to $10,000. In addition, as part of the investment, SET has the right to appoint a board member for ADDX.

In addition, ADDX intends to use some of the latest funds for other strategic initiatives, such as expanding its partnerships with issuers to support the launch of ADDX Advantage, a private markets service for wealth managers.

ADDX's existing shareholders include Singapore Exchange (SGX), Heliconia Capital, Development Bank of Japan, Japan Investment Corporation, Tokai Tokyo, Thai investment bank Kiatnakin Phatra and Hanwha Asset Management.

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

Factors that increase investor trust in Singapore Source: Independent Reserve

Raks Sondhi, General Manager of Independent Reserve Singapore:

“58% (of Singaporeans surveyed) see bitcoin as an investment asset or store of value.”

Nearly 60% of Singaporean investors had expected the mass adoption of cryptocurrencies by 2021, while 15% of respondents to this year's survey had begun to see Bitcoin (BTC) as a true form of money.

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