The overall digital asset market is booming right now – and that includes digital securities. This past week highlighted that, as both a sizable agreement was struck, while its market-cap hit an all-time-high.
ADDX Strikes $200M Agreement
It was just announced that Singaporean fund management company, ICHAM, has chosen to partner with ADDX in a deal amounting to $200 million. These funds were borne of a successful government grant (QDLPS) on behalf of the Chinese government, meant specifically for offshore investing.
In this deal, ADDX is said to be the ‘primary venue for investments’, and will provide Chinese investors with access to a variety of opportunities – all in the form of digital securities. ADDX notes that this is an important first step towards the development and launch of a digital securities exchange geared towards China.
ADDX CCO, Oi Yee Choo, commented on the importance of this agreement.
“The opening up of official channels like QDLP to allow Chinese investors to diversify their portfolios globally has been taking place gradually and steadily since the 2000s. Amid rising asset prices within China, this move by the Chinese authorities is a prudent one that empowers Chinese institutions and high-net-worth individuals to participate in high-quality opportunities wherever they are, before bringing their returns back into the Chinese economy to the benefit of local businesses and households. For international companies that manage or facilitate these investments, including ADDX, China represents a massive opportunity. We are only in the early days of this burgeoning flow of capital between China and the rest of the world.”
Security Token Marketcap Breaches $1B
As lucrative agreements involving digital securities are being reached, the overall sector is beginning to reflect this growth. Security Token Market (STM) recently highlighted this, as the overall marketcap of digital securities breached $1 billion for the first time.
STM notes that, “The security token market has seen incredible growth in 2021, capitalizing on large fundraises across the industry and easing regulatory constrictions on issuers and financial service providers around the world.”
The final push, allowing for a breach of the $1 billion mark, came on the back of the INX token being listed – resulting in a $335million boon to the overall marketcap. With this listing having now taken place, STM identified the following companies as having upcoming events/offerings sure to be noteworthy.
- The Republic Note
On a promising note, STM believes that looking forward “the security token industry is on the cusp of a breakout…While the industry has historically moved slower than what we’ve seen in DeFi or NFTs this year, it is certainly the blockchain application that is most poised to capture traditional market share and scale much faster in the future without the same regulatory crackdown that overshadows other crypto verticals.”
For a more thorough breakdown of where the digital securities market is going from here, check out STMs overview HERE.