#sdax

Amidst the continued volatility of the global economy exacerbated by various macroeconomic events, investors have been increasingly venturing into alternative investments. Alternative investments do not typically correlate to movements in the stock markets, which means they can be used to diversify portfolios and hedge against volatility. Driven by this rising demand, Preqin, in its Futures of Alternatives 2027 report, forecasts that globally, total alternative assets under management will reach US$18.3 trillion by 2027, up from US$9.3 trillion as at the end of 2021.

 In Singapore, private market investing has been restricted to more sophisticated investors for a variety of reasons. There is increased risk and complexity when it comes to investment opportunities which are typically illiquid assets with longer investment horizons and strategies that may be difficult for less experienced investors to understand and evaluate. There is a relative lack of access to information on investment opportunities and the significant minimum investment size requirements which may be prohibitive for retail investors who have limited financial resources.

However, individuals who qualify as Accredited Investors according to the criteria set out by the Monetary Authority of Singapore (“MAS”) are able to access thebenefits of private market investing. These investors are generally assessed to be high-net-worth (“HNW”) individuals who are deemed to possess the knowledge and or experience to understand and the resources to bear the risks associated with alternative asset investments.

Benefits of being an Accredited Investor

Opting-in as an Accredited Investor comes with certain advantages and opportunities in the world of investing. These include:

Access to exclusive investment opportunities from the private markets: Accredited Investors have access to a wider range of investment opportunities, including private equity, private credit, real estate, sustainability and collectibles. These investments often have the potential for higher returns but are generally considered riskier and require a higher level of investment expertise.

Ability to diversify investment portfolios beyond the traditional asset classes of equities and bonds: SDAX curates digital asset investment opportunities which are structured as securities or fund units and are based on real assets with intrinsic value, such as real estate, in the future, fine art and funds. Accredited Investors can access these investment opportunities that act as a hedge against market volatility and potentially benefit from better risk-adjusted returns.

Potential for higher returns: Many investment opportunities available to Accredited Investors have potential for higher returns compared to traditional investment options. This would include the opportunity to invest in institutional-grade investments, through direct access to the private exchange and its deal listings, as well as other forms of digital securities, which were previously only available to family offices or ultra-high-net-worth individuals at a minimum of US$5 million. With the benefit of tokenisation, qualifying AIs have access to these investments.

Participate in early-stage investments: Accredited Investors have the opportunity to access investment deals with secondary liquidity and trading options through an exchange, offering two sources of liquidity which is not restricted to redemption by asset or fund managers.

Qualifying as an Accredited Investor

In line with MAS’s Securities and Futures (Classes of Investors) Regulations 2018, an individual Accredited Investor has to meet at least one of the following criteria: 

a.     Minimum income of S$300,000 in the last 12 months (or its equivalent in a foreign currency);

b.    Have at least S$2 million of net personal assets, of which the net value of your primary place of residence can only contribute up to S$1 million; or

c.    At least S$1 million value of Net Financial Assets (or its equivalent in a foreign currency).

A corporate Accredited Investor has to meet at least one of the following criteria:

a.   All equity owners must individually meet the Accredited Investor requirements set forth by MAS; or b.   The company’s most recent audited balance sheet should exhibit net assets exceeding S$10 million (or the equivalent amount in a foreign currency).

Access to SDAX’s Exclusive Deals and Global Private Exchange as an Accredited Investor

SDAX Exchange connects markets through partnerships with digital assets players around the world, delivering a seamless and efficient cross-border digital assets ecosystem for wealth creation.

Accredited Investors will have access to exclusive investment opportunities via SDAX’s financial services and multi-asset investment platforms.

They will also benefit from attending closed-door events and webinars and gain from insights shared by market players to broaden their knowledge of the intricacies involved in investing in alternative assets.

MPMR is the premier precious metals refinery in Oman

Funds raised will go towards expansion plans in Asia and the Gulf Cooperation Council region (“GCC”)

SDAX, Singapore’s Digital Asset Exchange, is pleased to announce the successful closing of its US$50 million Series B2 funding round led by the Oman-based Muscat Precious Metals Refining Company LLC (“MPMR”). This follows a US$18 million Series B funding round in 2021 led by PSA International, Straits Trading Company, and New Horizon Global. They joined existing shareholders: ESR, RHT and Crazy Goats, supporting SDAX’s mission to empower investors with access to private markets and alternative investment opportunities.

The funds raised will accelerate the expansion of the SDAX ecosystem on several fronts, chief among them is the focus on client acquisition and the inclusion of other business lines such as wealth and fund management. Regional expansion is another priority, as is the launch of a digital asset exchange in Oman. This platform will not only provide a strategic gateway to the GCC and Africa but will also connect Oman to liquidity pools globally.

Rachel Chia, Chief Executive Officer of SDAX, said,  “The successful Series B2 funding round is a testament to SDAX’s commitment to democratise access to institutional-grade private markets and alternative investments. We value the continued support of our current investors, and welcome both our new shareholders MPMR and the business potential that this new partnership brings. We are particularly excited about the opportunity to expand into the GCC region.”

Nick Cochrane-Dyet MBE of MPMR, and Chair-designate of SDAX, said: “After more than a year of working with SDAX, the results of our partnership have demonstrated the potential SDAX has to offer in democratising investments for financial inclusion. We look forward to deepening our partnership with SDAX by developing capabilities in Oman to provide companies in the GCC with an alternative source of funds, and to building a strong investor base in the region. We look forward to supporting SDAX’s growth journey and contributing to its continued success.”

Tan Chong Huat, outgoing Chairman of SDAX, said: “We welcome MPMR to our esteemed roster of shareholders and are proud of the SDAX team’s well-deserved achievements. Looking ahead, we are thrilled about SDAX’s international expansion and being recognised as one of the leading digital asset platforms globally. I am honoured to have been a part of SDAX’s success and now wish SDAX to attain further heights together with MPMR.”

In April this year, the diversity of products offered on SDAX’s platform has been bolstered by the strongest demand for gold in over a decade. SDAX had teamed up with MPMR to offer securitised Gold Tokens on the SDAX Exchange platform. First of their kind, these tokens offer investors fractional gold investments and trading, backed by physical gold bullion held at Le Freeport in Singapore. Following this, SDAX has issued a popular series of short-term gold financing notes offering investors double-digit yields.

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About SDAX

Singapore’s Digital Asset Exchange (SDAX) is a MAS-regulated investment and trading platform serving institutional, accredited and retail investors. We provide access to fractionalised institutional-grade investment opportunities that have not previously been available to most investors. Our strength lies in private credit, real estate and impactful investment opportunities. SDAX partners with corporates, financial institutions and family offices to bring access to the underserved market.

At SDAX, we commit our expertise and technological know-how to unlock innovative investment opportunities to drive sustainable and impactful growth.

SDAX represents the merged entities of digital asset exchange Digiassets Exchange Singapore (SDAX) and fintech company, Minterest Holdings.

The merger and rebranding bring synergy for SDAX by combining capabilities to offer both a Digital Asset Exchange, regulated under its Recognized Market Operator (RMO) licence, and Capital Markets Services, regulated under its Capital Markets Services (CMS) licence.

SDAX is a MAS regulated investment platform serving institutional, accredited and retail investors where we provide access to uniquely curated assets that are only available to the most discerning. Our strength lies in real estate, ESG and impactful investment opportunities, and we partner with companies and institutions to raise capital efficiently.