Singapore stock exchange backs ETH-based security token platform

10 Jul, 2019 | Updated: 10 Jul, 2019
by Fifi Arisandi
Singapore stock exchange backs ETH-based security token platform

Positive developments in the crypto industry seems to keep coming from the rich South East Asian country, Singapore. 

Seems like Singapore-based crypto investors are having good days as updates about positive developments keep on coming these days.

After earlier it was reported that the government is considering removing goods and services tax (GST) for crypto payments, the Singapore stock exchange (SGX) is said to back a security token trading platform.

The newly launched platform, namely the 1X platform, which also receives technical support from ConsenSys will have an Ethereum token as its first listing.

The token that represents around 7% of the shares of Aggregate Asset Management (AAM), a Singapore fund manager is purchasable with Singapore dollar.

1X aims to provide an IPO-like platform but for private companies to raise capital and to increase liquidity in the primary capital market by using a public blockchain to validate transactions, as reported by Yahoo Finance.

As a strategic investor, the SGX will also be involved in the operational of 1X. Meanwhile, ConsenSys’ role is the designer of a specific solution of the new platform, called “modified ERC-20 tokens”, which was created to satisfy interoperability needs and regulatory requirements.

Speaking about his platform, 1X’s CEO, Haiping Choo said, “We take a portion of private companies – usually 10 to 30 percent – and put that into a special purpose vehicle (SPV) … to back every token we mint for listing and trading.”

“The overall idea is to bring liquidity to an otherwise historically illiquid assets. We are starting off with private companies. In the future, we intend to apply the same workflow to other illiquid assets like bonds or real estate, etc,” he added.

Meanwhile, just a couple of hours ago, renowned crypto exchange, Binance officially launched the fiat-to-crypto platform of Binance Singapore, as reported by Chepicap earlier.

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