CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

Singapore’s ADDX eyes expansion in Japan

By Debabrata Das

07:18, 11 November 2021

A view of Tokyo’s central business district
A view of Tokyo’s central business district - Photo: Shutterstock

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.

US100

19,814.20 Price
+1.490% 1D Chg, %
Long position overnight fee -0.0263%
Short position overnight fee 0.0041%
Overnight fee time 21:00 (UTC)
Spread 1.8

Gold

2,395.69 Price
-0.200% 1D Chg, %
Long position overnight fee -0.0196%
Short position overnight fee 0.0114%
Overnight fee time 21:00 (UTC)
Spread 0.60

BTC/USD

67,793.15 Price
-0.090% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00

ETH/USD

3,457.26 Price
-1.420% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

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. 

Read more: Token technology set to disrupt 8trn global bond market

Rate this article

Capital Com is an execution-only service provider. The material provided in this article is for information purposes only and should not be understood as investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents and has not been prepared in accordance with the legal requirements designed to promote investment research independence. While the information in this communication, or on which this communication is based, has been obtained from sources that Capital.com believes to be reliable and accurate, it has not undergone independent verification. No representation or warranty, whether expressed or implied, is made as to the accuracy or completeness of any information obtained from third parties. If you rely on the information on this page, then you do so entirely at your own risk.

Still looking for a broker you can trust?

Join the 630,000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading