The Singapore-based security token platform is expecting a significant increase in its revenue from the Japanese market, following a deal with Tokai Tokyo.
SGX-backed ADDX will be offering fractional private market investment products to investors in Japan, with partner Tokai Tokyo securing a security tokens license from the Japanese regulator, the private markets platform announced in a statement on Thursday.
To begin, Japanese real estate will be tokenized and packaged to sell to Singapore and Japanese investors in units of less than $10,000. The two companies also plan to set up ADDX Japan in 2023, «Nikkei» reported.
Tokai invested in ADDX in 2019, when the platform was known as iStox. It was also a lead investor in its $50 million Series A funding round in 2021, which included Japanese investors JIC Venture Growth Investments (JIC-VGI) and the Development Bank of Japan (DBJ), Singapore Exchange (SGX) as well as Temasek subsidiary Heliconia Capital.
Greater Access
ADDX is a full-service capital markets platform with Monetary Authority of Singapore (MAS) licenses for the issuance, custody, and secondary trading of digital securities, allowing greater access for accredited investors to previously out-of-reach assets, including funds, bonds and pre-IPO equity.
«As Japan embraces innovation in the capital markets, individuals will, no doubt, be the chief beneficiaries. The community of individual sophisticated investors in Japan is deep and sophisticated,» Oi Yee Choo, ADDX chief commercial officer, said in the statement.
In October, ADDX partnered with UOB to tokenize a portion of a sustainability bond where UOB was the lead manager.
