Singapore trading platform raises $50 mln, led by Japan-backed firms
(Adds executive comment from interview)
By Anshuman Daga
SINGAPORE, Jan 21 (Reuters) - Private exchange iSTOX, backed
by Singapore Exchange and other investors, said on
Thursday it is raising $50 million in its first major funding
round, led by two Japanese state-backed firms.
The financing will enable iSTOX to expand in Asia and offer
a range of investment products, Oi Yee Choo, chief commercial
officer of the Singapore-based regulated trading platform told
Reuters in an interview.
Choo, formerly the Singapore investment banking chief of UBS
till late 2019, said iSTOX expects more than 20 listings on its
platform this year from the current six.
Japan Investment Corporation's venture capital arm and
Development Bank of Japan agreed to come in as new investors,
while existing backers such as Tokai Tokyo Financial Holdings
and Singapore Exchange also joined the Series A
funding, iSTOX said.
The trading platform offers issuance, custody and trading of
digitized securities using distributed ledger technology. It
aims to attract issuers and investors with instant trade
settlement, lower costs and fractional ownership.
The tokenisation process represents converting rights to an
underlying asset class such as shares of unlisted into a unique
digital form, which then becomes eligible for trading.
"Smaller and younger family offices and external asset
managers less covered by private banks are also looking for
cheaper and more direct alternative products," Choo said.
iSTOX is among a few Singapore-based platforms dealing in
private market securities, a fast-growing segment for investors.
Last year, it announced plans to expand into China.
Most platforms cater to high net-worth individuals and
institutional investors who are usually keen to put money into
more risky but often higher yielding assets such as hedge funds,
private equity and venture capital.
In December, DBS Group, Southeast Asia's biggest
bank, said it was setting up an exchange for digital assets,
(Reporting by Anshuman Daga; Editing by Sherry Jacob-Phillips
and Arun Koyyur)
First Published: 2021-01-21 03:00:00
Updated 2021-01-21 06:54:56
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