Announced mid-July 2019, 1X— Singapore’s first and only regulated private securities exchange— has officially launched. The exchange already features more than $4.1 million worth of tradeable private equity in the form of security tokens.
The Launch of Singapore’s Security Token Exchange 1X Explained
The security token industry continues to develop in Singapore.
1X was originally built by CapBridge, which is backed by SGX (Singapore Exchange). CapBridge received a Recognized Market Operator (RMO) license from the Monetary Authority in Singapore (MAS) in November 2019. 1X now operates under this license.
After a six-week campaign which featured hundreds of bids from investors, a Singapore-based fund management company, Aggregate Asset Management (AAM), has listed a total of 5% of its share equity on 1X.
It amounts to more than $4.1 million worth of tradeable private equity, all represented through security tokens.
A ceremony held July 10th marked the official listing, where representatives from 1X, AAM, CapBridge, ConsenSys, and SGX were present.
According to SGX SVP and head of equity capital markets Mohamed Nasser Ismail,
“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.”
Now, private companies can list a maximum of 30% of their shares on 1X. The exchange claims the new capability creates a new, regulated asset class for accredited investors in Singapore.
The platform also provides eligibility to certain overseas retail investors, so long as they satisfy the necessary Know Your Customer (KYC) criteria.
According to 1X,
“The overall idea is to bring liquidity to an otherwise historically illiquid assets. We are starting off with private companies. In the future, we intend to apply the same workflow to other illiquid assets like bonds or real estate, etc.”
In addition to equity, security tokens have been integrated in assets such as real estate, investment funds, and even fine art.
What do you think of the launch of 1X in Singapore? We want to know your thoughts in the comments section below.
Image courtesy of 1X.