Singapore Exchange Backs Launch of New Security Token Trading Platform

Asia Blockchain Review
July 24, 2019

Singapore’s public stock market, Singapore Exchange Ltd (SGX), has backed the launch of a new trading platform for security tokens with the support of Ethereum startup ConsenSys. 

As reported by CoinDesk, the 1X platform went live this month with its first listing of an Ethereum token. Purchasable with Singapore dollars, the token represents about 7% of the shares of Aggregate Asset Management (AAM), a Singapore fund manager. 

Satisfying Interoperability Needs and Regulatory Requirements

The manager raised some US$4 million in fiat currency in the six weeks since May 4, 2019. To account for their ownership, now tradable on 1X, investors in the round received corresponding Ethereum tokens.

For its part, New York-based ConsenSys helped design a solution for 1X to issue “modified ERC-20 tokens” in order to satisfy interoperability needs and regulatory requirements.

This design essentially makes transactions of the securities-backed Ethereum tokens visible on the Ethereum network like any other ERC-20 tokens, but without giving users direct custody of the assets.  

Raising Capital and Increasing Liquidity via Public Blockchain

1X was launched with the aim of providing a platform similar to an initial public offering (IPO), but for private firms to raise capital and increase primary market liquidity by implementing a public blockchain network to validate transactions.

The platform was developed by Capbridge, a Singapore-based exchange for primary market stock offerings that holds both a capital markets services (CMS) license and a recognized market operator (RMO) license for 1X.

As a strategic investor in 1X, SGX not only has an equity stake but is also involved in its business operations. 


About Asia Blockchain Review

Asia Blockchain Review is the largest initiative for media and community building in Asia for blockchain technology. It aims to connect all blockchain enthusiasts on a regional scale and facilitate the technological foundation of blockchain through a range of group discussions, technical workshops, conferences, and consulting programs.

Our goal is to cultivate and encourage a collaborative community for our members to gather, share their experiences and endeavors in the blockchain space, and brainstorm the potential uses of blockchain technology.

Follow Asia Blockchain Review on:

    Related Article
    Mambu’s APAC MD Lays It All Out
    Asia Blockchain Review had recently talked to Myles Bertrand, the APAC Managing Director for Mambu, ...

    July 5, 2020

    IBM Z and Cybersecurity: The New Normal
    The usual suspects in the hacking circles are still doing their thing, and wreaking havoc on public ...

    July 5, 2020

    Mambu’s APAC MD Talks To Us
    Recently, Mambu announced a global partnership with Google Cloud to accelerate customers’ move to cl...

    July 4, 2020

    WeBank And OpenNodes : A Union Of Excellence
    We managed to get Henry Ma of WeBank and Ng Yi Ming of Tribe to talk about the FISCO BCOS unveiling ...

    July 3, 2020

    We provide information about Asia Blockchain Review latest activities as well as global blockchain news and research. Subscribe to our Newsletter now or Contact us