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Private market exchange ADDX has raised approximately US$20 million in fresh capital from new and existing shareholders, with KB Securities, a subsidiary of Korea’s largest banking group KB Financial Group (KBFG), leading the investment, which was part of an upsized Pre-Series B round.
The round previously announced a US$58 million fundraise involving new shareholders Stock Exchange
of Thailand (SET), Hamilton Lane and UOB.
The MAS-regulated platform will use the funds to scale its wealth management platform launched earlier this year for private banks, brokerages and family offices, as well as fund ADDX’s global expansion, according to an announcement on Tuesday.
ADDX uses blockchain technology and tokenization to give investors access to private market deals, private credit and other fixed income investments, private equity, hedge funds and private real estate.
Using blockchain and smart contract technology. ADDX has grown its investor base by around 80%, year-on-year, the company said.
“ADDX has become the focal point for Asian financial institutions that believe in building a new technology-driven infrastructure for private markets, to overcome inefficiencies in the traditional model,” Oi-Yee Choo, CEO of ADDX, said.
Tokenized investing on the rise
Tokens or small-sized funds issued through a security offering entitle even small-quantum investors to participate, who can purchase illiquid assets like private equity, which tend to offer higher returns but can be challenging to trade in and out of quickly.
A recent Blockhead survey of 25 investment advisors, asset managers, and analysts at research firms noted that investment management firms, private markets investment firms and crypto exchanges have jumped into the bandwagon of tokenized funds, with large investment management firms and crypto exchanges considering different products for such investors.
ADDX has raised a total of US$140 million since its launch in 2017, from investors including Singapore Exchange (SGX), Stock Exchange of Thailand (SET), Hamilton Lane, Temasek subsidiary Heliconia Capital, UOB, Tokai Tokyo Financial Holdings, the Development Bank of Japan (DBJ), Kiatnakin Phatra Financial Group, Krungsri Bank, and more.