Singapore Stock Exchange (SGX) Backs Ethereum Security Token Trading Platform 1X

Security token trading platform 1X has launched with support from Singapore Exchange (SGX), Singapore public stock market, and ConsenSys, an ethereum blockchain solution provider.

This news follows the government’s decision to remove goods and services tax (GST) for crypto payments. SGX will see itself as a strategic investor with equity stakes and participation in business operations.

1X was originated by industry experts with many years of investment participation in private companies in various growth stages. It is also an affiliated entity of CapBridge, an online capital raising platform for growth companies.

While CapBridge enables investors to efficiently access promising private companies, there is still a strong demand for orderly and transparent exit options for investors in private companies other than an IPO.

1X allows the primary and secondary trading of private companies' securities and structured products by accredited and institutional investors. CapBridge is targeting growth-stage companies – both family businesses and venture-backed firms that have more than US$5 million in revenue for the most recent 12-month period, and have raised at least US$10 million in institutional financing.

Chief executive Johnson Chen said that the traditional private investing space is a fairly closed system where firms take a long time to seek out potential investors and close a deal. Such deals typically emerge out of the informal networks of bankers and brokers.

Haiping Choo, 1X CEO, said that the exchange will originally get a part of private companies, ordinarily between 10% and 30%, and store it into a special purpose vehicle to support every token minted for listing and trading. They will first focus on private companies, with plans to expand on other illiquid assets such as bonds and real estate.

Choo adds:

“The overall idea is to bring liquidity to 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.”

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