ADDX (formerly iSTOX), the Singapore-regulated exchange for blockchain-based security tokens, has raised $58 million (USD) bringing its cumulative funding to almost $120 million. Major new investors in the pre-Series B round include the venture arms of Thai stock exchange SET and Thailand’s third-biggest bank Krungsri as well as Hamilton Lane and UOB. Singapore Bank UOB recently partnered with ADDX to issue a $100 million tokenized bond for SingTel.
The digital securities startup already has a high profile set of investors across Asia, including the Singapore Exchange (SGX) and state-owned Temasek’s investment arm Heliconia Capital. Its backers extend to Japan and Korea, including the Development Bank of Japan, Tokai Tokyo Financial and Korea’s Hanwha Asset Management, amongst others.
A key aim of tokenization is to lower the barriers to entry, making it less expensive to raise funds and reducing the minimum investment amount. Assets tokenized include private company equity, bonds, hedge funds and real estate, and ADDX processed $150 million in transactions in 2021.
“This investment highlights our conviction around the attractive opportunity in providing private market investments to the non-institutional channel,” said Erik Hirsch, Vice Chairman and Head of Strategic Initiatives at Hamilton Lane.
However, despite making it easier to invest, ADDX only targets accredited investors.
“SET is the second stock exchange to join as an investor after SGX, and this is part of a larger global trend over the past two years of exchanges joining forces in a new capital market landscape that emphasises continuity between the public and private markets,” said Oi-Yee Choo, CEO of ADDX.
Meanwhile, SET is readying to launch the Thai Digital Assets Exchange (TDX) in the third quarter, having received a license in late March. SGX is also involved in tokenization through MarketNode, its digital asset joint venture that is initially targeting bonds.