It has just been announced that CapBridge Pte Ltd., a global capital-raising platform, has received a license to operate a registered tokenized security exchange in Singapore. The license was approved by the Monetary Authority of Singapore, making the firm one of the few licensed platforms for tokenized securities in the world.
Singapore has become a hub for blockchain-related innovators in the past year. Not just one of the fastest growing countries in the world, but Singapore has been among the most open when it comes to cryptocurrency-related regulations. Now, it has announced that the state would be allowing further fintech innovation with the approval of CapBridge Pte Ltd. and their tokenized security exchange.
The 1X Platform
CapBridge has said that the newly-approved exchange will be called the 1exchange or ‘1X’ for short. The Monetary Authority of Singapore has officially approved the new license which will allow CapBridge to develop their platform with the help of ConsenSys, one of the leading blockchain-based technology firms in the world. CapBridge has said that they plan to release their platform on Ethereum and that it will boast many digital assets beyond just tokenized securities.
1X will serve mid-to-late growth companies and will facilitate deals with investors. It will also be a private exchange, thus making all ownership of its hosted companies limited to company founders. Fiat settlements from bank transfers and smart contract-based permissioning will be a core function on the exchange. In all, CapBridge is looking to position 1X as an epicenter of liquidity for digital assets.
Johnson Chen, the founder of CapBridge, has said that obtaining the license was a long process, taking some 2 years to gain approval. With the help of ConsenSys, they were able to make this a reality. Chen has said that the partnership will allow for “an additional layer of security and authentication in the future.” This kind of trust, it seems, is desperately needed for the security token industry to go mainstream.
Singapore is quickly positioning itself as the gateway cryptocurrency market for the rest of Asia. Just earlier this month, it was announced that iSTOX would be holding its Security Token Offering in Singapore with investments from Heliconia Capital Management and Singapore Exchange (SGX).
Do you think Singapore will lead the way for tokenized securities? Rather than start-ups, should our focus be on registered exchanges during this early time for this still-emerging industry? Let us know in the comments below.
Image courtesy of CapBridge.