Thai stock exchange SET is the new investor in the pre-Series B round to raise funds of around $120 million.
The Singapore-regulated exchange for blockchain and smart contract-based security tokens, ADDX formerly known as iSTOX, has raised $58 million (USD in the pre-Series B round, to bring its total funding to nearly $120 million.
The venture right arm of Thailand’s stock exchange (SET) and Thailand’s third-largest bank Krungsri, as well as Hamilton Lane and UOB, are among the new investors in the pre-Series B round, and the total funds raised by ADDX are around $120 million. Singapore Bank UOB recently partnered with ADDX to issue a tokenized bond for SingTel worth $100 million.
How Tokenization Will Work
According to the announcement, ADDX tokenizes and fractionalizes private markets including such as pre-IPO equity, private equity, hedge funds, and bonds using blockchain technology and smart contracts. Through tokenization, ADDX can reduce the minimum investment sizes for such private investments.
One of the primary goals of tokenization is to lower entry barriers by making it less expensive to raise funds and lowering the minimum investment amount. ADDX has done $150 million in transactions in 2021.
The platform, ADDX, effectively reduces the minimum investment limit in private markets from $1 million to $10,000. Furthermore, as part of the investment, SET gains the authority to hire an ADDX board member.
Also, ADDX aims to reroute some of the new funding to other strategic priorities, such as expanding partnerships with issuers and helping with the launch of ADDX Advantage, a private market service for wealth managers.
The Singapore Exchange (SGX) and state-owned Temasek’s investment and Heliconia Capital are among the early investors in the ADDX. Its supporters include the Development Bank of Japan, Tokai Tokyo Financial, and Hanwha Asset Management of Korea.