This past week saw a couple of noteworthy developments surrounding digital securities. While a pair are joining efforts, another must now forge a path under new leadership. The following are a look at the details behind each move.
Investcorp & ADDX
Many high-potential investment opportunities can be a costly endeavors, with high barriers to entry. A pair of companies, Investcorp & ADDX, have decided to partner together in an attempt to change this narrative. With the use of digital securities, these companies promise “…more seamless, coordinated delivery of opportunities to end-investors and will benefit accredited corporate and individual investors, offering them easier access to opportunities that traditionally require high minimum ticket sizes”.
Investcorp & ADDX have earmarked the following areas as having high potential for being transformed through digital securities.
- Private equity
- Real estate
- Credit management
- Strategic capital
Right out of the gates, it would appear as though real estate is a top-target of Investcorp & ADDX. The pair indicate that $150 million was recently raised from investors by the Sunbelt Multifamily Portfolio. This fund, which is comprised of a ‘multifamily apartment complex’ is now available for trading on ADDX exchange – a feat made possible through use of digital securities.
The companies indicate, “…efficiency gains from digital securities meant investors on ADDX could take part in the fund with a minimum amount of US$20,000 – significantly lower than the US$500,000 typically required for private real estate funds.”
For those unaware, ADDX was formerly known as iSTOX – a company boasting various blockchain related achievements within the nation of Singapore. It remains a fully regulated exchange under the Monetary Authority of Singapore (MAS).
tZERO CEO Departure
Over the past few years, tZERO has managed to become one of the most well-known companies within the digital securities sector. During this time, it has managed to do so under the watch of CEO Saum Noursalehi. Times are changing however, and the company will need to find its way forward under new guidance, as Noursalehi has now resigned his post. Moving forward, tZERO indicates that CLO Alan Konevsky will assume the role of interim CEO.
Upon departing from the company, Noursalehi commented on the progress which tZERO has made over the years, stating, “When I joined tZERO, the company was still defining its strategic vision, digital product platform and roadmap, and in forming the right organization to execute its mission. Having accomplished these targets with our new organization, I am ready to pursue the next challenge in my career. While this was a very difficult decision for me, I know I am leaving the company in a good place and in good hands. I am very confident that the company is on the verge of even greater success and it has been a privilege to work with the entire tZERO team.”
While the upper brass at tZERO may be in a state of flux, the company remains hard at work. Only recently, we highlighted the commencement of Exodus investor onboarding to its ATS for trading.