Today Singapore’s OCBC Bank and blockchain digital asset marketplace ADDX announced a long term partnership. The first product involved OCBC issuing a tokenized equity-linked structured note to accredited investors. OCBC is Singapore’s second largest bank.
Kenneth Lai, OCBC’s Head of Global Treasury, commented on the partnership, “we are hopeful that it will lead to more diverse product offerings that are relevant and appealing to the global accredited investor base of ADDX.”
The three month note gives a fixed coupon and is based on the equity of an un-named US BigTech. These notes enable investors to benefit from the price movement in the equity and additionally receive an additional cash flow.
It requires a minimum investment of US$50,000 and is only available to accredited investors. In Singapore, that means total net assets of more than S$2 million ($1.5m) or income of more than S$300,000 ($222,000).
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“Structured products are designed to provide investors with unique risk and return characteristics that may not be available through traditional investments, and are an attractive option for investors weighing yield-generating options in the current economic climate,” said ADDX CEO Ms. Oi-Yee Choo.
ADDX’s tokenization platform enables cost savings in the issuance of digital securities while supporting fractionalization. So far, ADDX has listed more than 70 deals on its platform, tokenizing a wide variety of assets ranging from commercial paper to bonds, equity and real estate.
It has worked with the likes of Hamilton Lane, Investcorp, Singtel and CGS-CIMB. The Singtel bond deal involved ADDX partnering with Singapore’s number three bank, UOB.
ADDX has numerous high profile backers across Singapore, Japan, Korea and Thailand. They include state-owned Temasek’s investment arm Heliconia Capital, Hamilton Lane, UOB, Singapore stock exchange SGX, the Thai stock exchange SET and the Development Bank of Japan.