Tag: addx

Singapore-based ADDX Raises $58m in Pre-Series B Round

Digital securities token exchange ADDX raised $58 million in a Pre-Series B round on Tuesday. 

The Singapore-based blockchain and smart contract-driven FinTech company said the latest funding would allow ADDX to scale its operations as the company entrenches its position as Asia’s largest private market exchange, adding that several strategic initiatives will also benefit from the fresh capital.

Oi-Yee Choo, CEO of ADDX, commented on the latest round of funding and welcomed new investors:

“The sizeable investment from SET, UOB, Hamilton Lane and Krungsri serves as a ringing endorsement for ADDX’s business model, the team we have assembled and the broader vision we have for transforming the capital markets and the wealth management industry.”

Choo believes that this funding round would make the company more vital for long-term success and adding new shareholders are more than capital partners and strategic partners.

New investors include SET Venture Holding, a subsidiary of the Stock Exchange of Thailand (SET), Singapore-based bank UOB, Hamilton Lane (NASDAQ: HLNE) and Krungsri Finnovate, the corporate venture capital arm of Krungsri (Bank of Ayudhya PCL).

According to the statement, the latest investment brings total funds raised by ADDX to around $120 million since the company’s inception in 2017.

 “This investment will further strengthen Krungsri’s ecosystem and partnerships,” said Sam Tanskul, Managing Director, Krungsri Finnovate Co., Ltd.; “The partnership with ADDX complements our footprint in our home region of Southeast Asia and Greater China,” said Leong Yung Chee, Head of Group Corporate Banking, UOB.

Crypto has become one of the most rapidly developing industries in Singapore as financial regulators aim to keep the industry’s development on the right track.

Previously, the city-state’s watchdog said regulation on crypto should be tight but clear and the balance between nurturing the rapidly growing industry and taming its potential risks should be well-considered.

In January, the Singapore government prohibited all outdoor advertisements for all cryptocurrencies or digital payment tokens (DPT) service providers.

ADDX Introduces Cash Management Tool ADDX Earn

ADDX has introduced a cash management tool for investors, which consists of a solution that aims to withstand short-term volatility while preserving capital.

The new ADDX Earn will provide one more option to investors with excess funds in their wallets to make interest, instead of their funds sitting idle, according to the statement.

Per the private market exchange company, ADDX Earn has been built to boost investors’ returns deposited in their ADDX wallets and has not yet decided on which private market product to take part in. It added that some of the idle capital may also have come from previous investment earnings on ADDX.

The plan of the new management tool is also to beat short-term bank deposit rates by providing higher target returns for products under ADDX Earn. Many investors usually store undeployed capital in short-term bank deposit rates.

“The first two funds to be launched under the ADDX Earn umbrella are by Lion Global Investors, a fund manager that is a part of the OCBC Group,” ADDX said.

The two funds named the LionGlobaI SGD Enhanced Liquidity Fund and LionGlobaI USD Enhanced Liquidity Fund, are diversified over a range of issuers and tenors through investments in high-quality portfolios of debt instruments.

‘The two funds have weighted average portfolio durations of less than a year, which gives Lion Global the flexibility to adjust portfolio allocations in response to changing interest rates and market conditions,” ADDX said.

According to ADDX, investments can be redeemed on a weekly basis.

The funds are also targeting low-volatility assets. These are being done as they are “well-suited” for the current market environment that has seen increased volatility in other asset classes, ADDX announced.

Interest is accrued daily for both funds. As of July 31, the LionGlobaI SGD Enhanced Liquidity Fund had a weighted average yield to maturity of 2.22% p.a., while that of the LionGlobaI USD Enhanced Liquidity Fund was 2.38% p.a. These rates change monthly depending on the prevailing interest rate environment and the underlying assets held by the funds.

Gerard Lee, Chief Executive Officer of Lion Global Investors, said, “our liquidity funds are typically used by financial advisers and digital players. We are therefore delighted to have a private market exchange use our liquidity funds to provide a solution for their investors’ excess cash.”

The SGX-backed ADDX was founded in 2017. It is currently serving individual investors from 39 countries across the Asia Pacific, Europe and the Americas – except the US.

The company has started using blockchain and smart contract technology to reduce manual interventions in issuing, custody and distributing private market products.

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