Singapore’s ADDX eyes expansion in Japan
07:18, 11 November 2021
Singapore’s private market exchange ADDX is eyeing expansion in Japan after forming a partnership with Tokai Tokyo Financial Holdings for offering fractional private market investment products to investors in the East Asian nation.
The announcement of the partnership came after Tokai Tokyo secured a security tokens licence from the Japanese regulator Financial Services Agency. The Tokyo Stock Exchange-listed company is the holding company for a leading securities brokerage in the country and offers investment and trading services through its 144 offices. The company has $1.4bn of net assets and clients’ assets under management of $38bn.
“Japan has one of the most forward thinking regulator on the issue of digital securities…Digital securities can fractionalise investments, helping individuals to diversify their portfolios and to invest with a strategy and asset-mix closer to that of family offices or institutions,” Oi Yee Choo, chief commercial officer of ADDX said in a statement.
Innovative business model
“It took a long time to get to this point, but we now have a licene for security tokens. Our future collaboration with ADDX will be key to establishing an innovative business model in Japan, where a digital security exchange like ADDX does not exist yet,” said Yuji Ban, senior managing executive officer at Tokai Tokyo.
Earlier this week, ADDX’s Choo told Capital.com that the fractionalisation possibilities offered by token technology powered by blockchain will disrupt the global bond market.
ADDX, which is licenced and regulated by the Monetary Authority of Singapore, has conducted a number of smaller value bond issues in the city-state. According to the company, blockchain allows minimum ticket sizes for private market products to be reduced from $1m to $10,000, expanding access for accredited investors to previously out-of-reach assets, including funds, bonds and pre-initial public offering equity.