1exchange (1X) Launches
One of the world’s first regulated, and licensed, private securities exchange, 1exchange (1X), has now launched.
1exchange is a Singaporean company, which has built their exchange on the Ethereum network. This platform has notably gained the support of major players such as the Singapore Exchange (SGX), CapBridge, ConsenSys, and more.
The launch of this platform provides the ability for SMEs to gain easier access to capital, as well as providing investors with greater liquidity and returns on their holdings.
First out of the Gates
With the platform going live, investors didn’t have to wait long to find out the first supported asset on the platform. This would be Aggregate Asset Management (AAM) – a Singapore based fund Management Company.
This marks the first of many anticipated securities to be traded on the platform in the near future. Companies listing securities on the platform are eligible to list up to 30% equity shares. For AAM this represents $5.6 million SGD being available for trading on 1exchange.
Representatives from the various companies involved in this endeavour took the time, at a recent launching ceremony in Singapore, to comment on the development. The following is what a few of these individuals had to say regarding the event.
Mohamed Ismail, Senior VP & Head Equity Capital Markets, SGX, stated,
“We recognise that companies in an earlier growth stage may need access to capital before they are ready for a public listing. We supported 1exchange to create a virtuous ecosystem of capital flow catering to companies in the mid-late stages of growth, adding to the vibrancy of the capital markets in Singapore. With 1exchange, companies such as Aggregate Asset Management now have more fundraising options, as well as a means to provide shareholders and other interested investors a market for these tradeable private equities. We are pleased to support this pipeline of private listings and look forward to helping companies prepare for an eventual public listing when they are ready.”
Kevin Tok, Co-founder of Aggregate Asset Management, stated,
“When we founded our company, we were among the very first fund managers not to charge a management fee. Today, we are again breaking new ground and making history as Singapore’s first privately-listed company on 1exchange. This private listing kicks off the next chapter of growth for us, and we look forward to bringing more value to our unitholders and shareholders.”
Choo Haiping, CEO of 1X, stated,
“1X is grateful for the support of our many stakeholders, including regulators, SGX, our partners in the financial industry, and the companies and investors who continue to believe in our mission to create a dynamic and vibrant private capital market through tradeable private equities.”
1exchange (1X), is a Singaporean company, which was founded in 2018. Upon receiving a ‘recognised market operator’ licence from the Monetary Authority of Singapore (MAS), 1exchange was able to develop and offer their services. This made the company the first, and currently sole, securities exchange within the nation.
CEO, Choo Haiping, currently oversees company operations.
ConsenSys is a software company, based out of New York, which was founded in 2014. Above all, ConsenSys works to provide companies with solutions built on the Ethereum network. ConsenSys notably provided the technical assistance needed by 1exchange throughout the development process of this trailblazing exchange.
The Singapore Exchange (SGX) is a leading exchange that has played an active role in the development of various companies involved with digital securities. The SGX is not only an investor in 1exchange, but acts as a strategic partner in their operations, as well.
In Other News
While 1exchange may be the first of its kind in Singapore, there are various other companies working to launch similar products in other parts of the world. Here are a few examples of exchanges which either have launched, or are expected to launch in the near future.
SIX Acquires Stake in daura – SDX Exchange
A Strategic Advantage – SDX Exchange
Boerse Stuttgart Subsidiaries to Benefit from Investment by SBI Holdings
It is fair to say that SBI Holdings has decided to go all-in on blockchain based endeavours as of late. This has been made evident through various high profile investments. The most recent of which include Ripple, Securitize, and now Boerse Stuttgart – the latter of which we will discuss here today.
In an effort to usher in higher levels of adoption surrounding digital securities, SBI Holdings has invested in multiple branches of the Boerse Stuttgart group.
- Boerse Suttgart Digital Exchange
- Boerse Stuttgart Digital Ventures
Plans Moving Forward
In their announcement, it is clear that the rationality behind this new partnership is geared around global expansion. With SBI Holdings operating within Japan, and the various branches of the Boerse Group operation throughout Europe, the pair should find the partnership mutually beneficial.
Beyond simple expansion, the pair of companies closed out their announcement by elaborating on their plans. They stated,
“The SBI Group and the Boerse Stuttgart Group are partners in the digital asset business in Asia, including Japan, as well as in Europe. We will work together to build a global digital asset finance ecosystem utilizing blockchain.”
Upon announcing these investments, representatives from each, SBI Holdings and Boerse Stuttgart, took the time to comment. The following is what each had to say on the matter.
Yoshitaka Kitao, CEO of SBI Holdings, states,
“Due to the decentralized nature of digital assets, it is our top priority to find globally suitable partners to build our digital asset ecosystem. The SBI Group, with its trading platform for digital assets and other relevant companies, will make full use of the cooperation with the Börse Stuttgart Group to respond to the global customer interest in digital assets.”
Alexander Höptner, Chairman of the Management Board of Boerse Stuttgart GmbH, states,
“Asia and Europe are currently the fastest growing markets for digital assets. With the SBI Group, we have found an ideal partner to realize our vision of an efficient, global ecosystem along the value chain of digital assets. In addition to the exchange of knowledge and technology, the collaboration also covers the issuance, listing and trading of digital assets across borders, as well as brokerage services and building the first global bridge for custody.”
The Boerse Stuttgart Group consists of various branches such as Boerse Stuttgart Digital Exchange, and Boerse Stuttgart Digital Ventures. These two branches, in particular, have a focus on blockchain based endeavours, including the eventual creation of a secondary marketplace for digital securities.
An acting subsidiary of SBI Group, SBI Holdings, was launched in 1999. The company maintains headquarters within Tokyo, Japan, where they seek out, and establish, strategic partnerships with high potential companies.
CEO, Yoshitaka Kitao, currently oversees company operations.
In Other News
In recent months, each of the companies discussed here today have found themselves in our news feed. Whether launching a digital exchange, or making strategic investments, both companies have been quite active. The following articles are just a couple discussing recent moves by both.
DX.Exchange Goes Bankrupt – CX Technologies Ltd
Additionally, a host of suppliers have taken suit against the company. These suits run the gambit from unpaid bills to the alleged fraud. The well-known cybersecurity firm, White Hat Ltd is one of the company’s claiming losses due to DX.Exchange actions. Another lawsuit lists Bee2See Dotan B.S. Solutions. This is the firm that handled DX.Exchange targeted marketing. Even the company supplying the servers never got paid – Malam Team.
Writing on the Wall – DX.Exchange
Employees and suppliers knew to take action earlier in the month after the firm closed its doors unexpectedly. At the time, DX.Exchange owner Pinhas Patarkazishvili cited the rising costs and dwindled profits the exchange had left. He told employees that he was searching for a merger or acquisition and if that he was unsuccessful, the company would permanently cease operations.
Security Tokens on the DX.Exchange
Will Employees and Affiliates Get Paid?
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