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Singapore Securities Exchange Business Gets "Go" For Launch
Tom Burroughes
23 November 2018
Global private capital platform has been given the green light by Singapore regulators for an associated entity to operate a securities exchange to help firms with capital-raising or preparing for liquidity events such as initial public offerings. CapBridge and blockchain technology group ConsenSys are developing a private securities exchange built on the public Ethereum blockchain. In due course, this exchange will offer services that include the listing and trading of security tokens.
The exchange of CapBridge Pte is called 1exchange, or 1X, and will be classed as a Recognised Market Operator in Singapore.
“With the RMO exchange licence, we can now offer an even more integrated suite of private capital services to deserving companies seeking growth capital and sophisticated investors looking for alternative growth options,” Johnson Chen, founder and CEO of CapBridge, said.
The 1X private exchange structure aims to boost liquidity for private companies prior to an exit event such as an initial public offering or merger and acquisition deal. “Companies listed on 1X remain private and enjoy more control, greater flexibility and lower costs as compared to a public listing,” the organisation said.
CapBridge and 1X aim to give firms a supportive private capital-raising environment. Such firms include private operating companies seeking capital or preparing for liquidity events; late-state, venture-backed companies with shareholders and employees seeking to monetise their shareholdings; and family-owned businesses seeking to diversify shareholder base or planning for management transitions.