By Staff Writer
CapBridge Group, partly owned by Singapore Exchange (SGX), has launched a blockchain-based private securities trading exchange based in Singapore, potentially allowing companies to save costs by raising capital without going through expensive public offerings.
The platform is supported by ConsenSys, one of the world’s leading blockchain technology service providers specializing in Ethereum.
1exchange, which went live on the public Ethereum network last week (July 10), will provide accredited investors to trade private equities on the public blockchain through their digital wallets, the statement said.
The platform is licensed and regulated by the Monetary Authority of Singapore as a “recognized market operator” and is the world’s first regulated exchange for private securities built on a public blockchain, according to a statement.
“With 1X, companies have a secure option of listing private equities to access global liquidity,” said the statement. “A private listing allows companies financial flexibility by listing a portion of their equity, without the high costs of conventional exits such as an IPO or M&A.”
Accredited investors with digital wallets anywhere in the world can now directly purchase and trade regulated digitized securities, or securities token offerings, typically of high-growth companies, on the blockchain-based platform.
The first company to list on 1X is Aggregate Asset Management Pte Ltd, a boutique fund manager for Asian equities, which raised the targeted amount of S$5.2mn within a span of six weeks, said the statement.
Joseph Lubin, founder of ConsenSys and co-creator of Ethereum, said the successful listing of its first batch of tradable private equities is a “breakthrough step in realizing the vision of using public Ethereum as a global financial settlement layer.”
“Companies pursuing a private listing on 1X are able to enjoy the best of both worlds,” said Choo Haiping, chief executive of 1X, “tapping into the lucrative private capital market while remaining private for optimal growth.”
1X is now helping more companies list and is exploring partnerships with other financial institutions and exchanges to increase access to a global liquidity pool.
Charles d’Haussy, director of strategic initiatives at ConsenSys, discusses 1X in detail during a Q&A with Blockchain Asset Review published last week (see here).