ADDX (formerly iStox): The Leader in Private Market Tokenization

From iStox to ADDX: A Singapore Success Story

In the early days of the security token revolution, forming partnerships to expedite development was crucial. One of the most significant collaborations emerged in Singapore between a fintech startup, the Singapore Exchange (SGX), and Heliconia Capital Management.

Originally known as iStox, the platform officially rebranded to ADDX in May 2021. Today, it stands as one of the world’s largest and most active fully regulated private market exchanges, using blockchain technology to democratize access to institutional-grade assets.

The Platform: Democratizing Private Markets

ADDX was built with a clear mission: to solve the liquidity and access problems inherent in private markets. Historically, investing in private equity, hedge funds, or pre-IPO unicorns required millions of dollars in capital and established connections.

By utilizing blockchain and smart contract technology, ADDX fractionalizes these heavy assets. This allows the platform to reduce minimum ticket sizes from the traditional $1 million to as low as $10,000. This efficiency opens the door for “accredited investors” to build diversified portfolios previously reserved for ultra-high-net-worth individuals and institutions.

Regulatory Milestones

The original launch was predicated on regulatory approval, a hurdle many competitors failed to clear. ADDX, however, successfully graduated from the Monetary Authority of Singapore (MAS) Fintech Sandbox in early 2020.

It is now fully licensed as a Recognized Market Operator (RMO) and holds a Capital Markets Services (CMS) license. This regulatory moat ensures that all issuances on the platform—ranging from commercial paper to real estate funds—adhere to the strict standards of the Singapore Securities and Futures Act.

A Powerhouse of Backers

While the initial partnership with SGX and Heliconia laid the foundation, the ADDX ecosystem has expanded to include some of the biggest names in Asian and global finance.

• Singapore Exchange (SGX): As an early backer, SGX brought deep experience in market infrastructure. Chew Sutat, former Executive Vice President at SGX, noted that the platform adds vibrancy to Singapore’s capital market ecosystem.
• Heliconia Capital Management: A subsidiary of Temasek Holdings, Heliconia focuses on investing in high-potential Singaporean companies. Their involvement validated ADDX as a “potential disruptor” in traditional capital markets.
• New Strategic Partners: In recent years, the shareholder list has grown to include UOB, the Stock Exchange of Thailand (SET), Hamilton Lane, and KB Securities.

Current Operations

Since its inception, ADDX has surpassed $2 billion in total transaction volume. The platform features a diverse array of issuers, including global heavyweights like Partners Group, Investcorp, and Hamilton Lane.

Unlike the early days when the industry struggled with a “lack of liquidity,” ADDX now operates a functional secondary market. Investors who purchase tokenized fund units can list them for sale on the exchange, providing a liquidity option that traditional private funds typically cannot offer until the fund matures.