Shalini Nagarajan

<div id="highlights-block_62b4567ffd550" class="highlights">
 <ul>
 <li>The partnership gives Chinese investors access to overseas opportunities in a range of assets</li>
 <li>Earlier this month, ADDX became the first financial institution to recognize cryptocurrency in its assessment of accredited investor assets</li>
 </ul>
 
</div>



Blockchain-based private market exchange ADDX has teamed up with China Construction Bank to enable domestic investors in China to engage in offshore investments.



The two firms will work together on a $200 million allocation under the Qualified Domestic Limited Partnership (QDLP) scheme, which allows experienced investors to participate in funds focused on overseas investment. This scheme enables investments in both public and private markets.



“By allowing domestic capital to buy into high-quality offshore assets, China is ensuring its investors can build globally diversified portfolios that are best positioned to preserve and expand gains from the opening-up of the country’s economy over the past few decades,” ​​ADDX CEO Oi-Yee Choo said in a <a href="https://www.addx.co/files/News_Release_China_Construction_Bank_ADDX_To_Partner_On_China_Offshore_Investments_17b830c16f.pdf" target="_blank" rel="noreferrer noopener">statement</a>.



ADDX will offer China-based investors access to private market opportunities issued as digital securities in a range of assets, from equities to hedge funds and venture capital funds, the statement said. Investors there have been trying to find ways around <a href="https://cms.blockworks.co/no-china-didnt-ban-crypto-its-just-pushing-exchanges-offshore/" target="_blank" rel="noreferrer noopener">restrictions</a> that effectively outlaw digital asset ownership.



The deal comes a year after ADDX reached an agreement with Singapore-based fund management company ICHAM, which received a $200 million QDLP allocation through the Chongqing government’s $5 billion quota. Under the agreement, ADDX became a key platform for investments made by Chinese institutions and individuals through the ICHAM fund in China.



Founded in 2017 with operations kicking in 2020, ADDX uses blockchain and smart contract technology to fractionalize private market investments, allowing it to lower minimum investments from $1 million to $10,000. The private market exchange raised $58 million in a pre-Series B funding round in May.



ADDX is licensed under the Monetary Authority of Singapore for the issuance, custody and trading of digital securities. Earlier this month, it became the first financial institution to <a href="https://cms.blockworks.co/singapores-addx-recognizes-crypto-for-accredited-investors/" target="_blank" rel="noreferrer noopener">recognize</a> cryptocurrency in its assessment of accredited investor assets.



The memorandum of understanding with China Construction makes way for the bank to be appointed as the custodian for the $200 million investment that ADDX effectively secured. It could also distribute the fund units to its wealth clients under the QDLP scheme. China Construction Bank is one of the country’s “Big Four” banks with a market capitalization of $175 billion, making it among the top most valuable banks in the world.



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ADDX

Singapore’s ADDX and China Construction Bank Team Up

Sebastian Sinclair

<div id="highlights-block_628c65de41e10" class="highlights">
 <ul>
 <li>A subsidiary of the Stock Exchange of Thailand as well as global investment manager Hamilton Lane have been onboarded as shareholders following the deal</li>
 <li>United Overseas Bank and the corporate venture capital arm of Thailand&#8217;s fifth-largest bank Krungsri, were also onboarded</li>
 </ul>
 
</div>



Blockchain-based private market exchange ADDX said Tuesday it has raised tens of millions of dollars from some of Asia&#8217;s largest financial institutions in a bid to maintain its position as a top operator within the region.



The Singapore-regulated exchange said in a statement that it had raised $58 million in fresh funding via a pre-Series B funding round from the likes of the Stock Exchange of Thailand subsidiary SET Venture Holding and global investment manager, Hamilton Lane. Hamilton manages roughly $851 billion in assets, according to its <a href="https://www.hamiltonlane.com/" target="_blank" rel="noreferrer noopener">webpage</a>.



Those two, including United Overseas Bank and the corporate venture capital arm of Thailand&#8217;s fifth-largest bank Krungsri, were onboarded as new shareholders.



Founded in 2017, ADDX is a full-services capital markets platform regulated by the Monetary Authority of Singapore (MAS). The exchange seeks to leverage blockchain and smart contract technology for the tokenization and fractionalization of private market opportunities such as pre-IPO equity.



The latest addition of shareholders joins those already listed on the ADDX cap table including the Singapore Exchange, Temasek-owned Heliconia Capital and the Development Bank of Japan, among others.



&#8220;Our corporate clients will be able to tap new fund-raising channels, while our accredited investor clients will gain access to alternative investments in tokenised assets,&#8221; said UOB&#8217;s Head of Group Corporate Banking Leong Yung Chee. &#8220;We look forward to a fruitful journey with ADDX.&#8221;



Funding will go towards scaling efforts, onboarding general partners and future product innovations that will attempt to bridge traditional and digital finance, ADDX said.



As part of the deal, the new shareholders will also partner with ADDX on specific projects that will assist the exchange in expanding into new business verticles, geographies and market segments.



“ADDX is on a mission to democratise the private markets,&#8221; ADDX CEO Oi-Yee Choo said in the statement. &#8220;This Pre-Series B round sets ADDX up strongly for long-term success.&#8221;



ADDX is owned and operated by ICHX Tech Pte Ltd which, in turn, has been recognized by MAS as a market operator and holds a capital markets services license which grants the parent company the right to deal in securities and provide custodial services.



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