(Add action comment from interview)
SINGAPORE, Jan 21 (Reuters) – Private exchange iSTOX, backed by the Singapore Exchange and other investors, said Thursday it is raising $ 50 million in its first major funding round, led by two backed companies Japanese state.
The funding will allow iSTOX to expand in Asia and offer a range of investment returns, Oi Yee Choo, chief commercial officer of the Singapore-based regulated trading platform told Reuters in an interview.
Choo, former head of investment banking in Singapore until the end of 2019, said iSTOX expects more than 20 listings on the platform this year from the current six.
The venture capital arm of Japan Investment Corporation and the Development Bank of Japan agreed to join as new investors, while existing backers such as Tokai Tokyo Financial Holdings and Singapore Exchange also joined Series funding. A, said iSTOX.
The trading platform offers the issuance, capture and trading of digital securities using distributed ledger technology. It aims to attract distributors and investors with immediate trading arrangements, lower costs and fractional ownership.
The tokening process represents the conversion of rights to a class of underlying assets such as shares of unlisted to a specific digital format, which is then eligible for trading.
“Smaller and younger family offices and outside fund managers not covered by private banks are also looking for cheaper and more direct alternative products,” Choo said.
ISTOX is among a few Singapore-based platforms dealing in private market securities, a fast-growing sector for investors. Last year, they announced plans to expand into China.
Most platforms cater to net worth individuals and institutional investors who are generally willing to invest in riskier assets but often with higher returns such as assets hedge, private equity and venture capital.
In December, DBS Group, Southeast Asia ‘s largest bank, said it was setting up an exchange for digital assets, including cryptocurrencies. (Reporting by Anshuman Daga; Editing by Sherry Jacob-Phillips and Arun Koyyur)