While various companies struggle to deal with the fallout of the FTX ecosystem collapse, other more regulated exchanges have continued to attract the attention of large investors. The most recent example comes from ADDX, and its success in generating $20M in fresh capital.
Details of the Raise
Coming in at $20M, this fresh capital was raised from both new and existing investors, and was part of what ADDX called an ‘upsized Pre-Series B round’, building on an impressive $58M earlier this year. With it, ADDX has now raised roughly $140M to date.
Notably, this particular raise was headlined by a subsidiary of the largest banking group (KB Financial Group) in South Korea – KB Securities. With its investment, ADDX indicates that there are now more than 12 financial institutions acting as shareholders within the company – indicating a high level of interest and belief in what ADDX has to offer.
Plans for the Capital
ADDX indicates that moving forward, a large portion of this fresh capital has been allocated towards a service it calls ‘ADDX Advantage’. Described as a wealth management platform, this new service is said to be aimed towards the following,
- private banks
- brokersages
- family offices
In addition to ADDX Advantage, the company states that it will also be focusing on expanding its operations in to new markets, along with obtaining the appropriate licensure to do so.
Commentary
Upon announcing its most recent capital raise, ADDX CEO, Oi-Yee Choo, took the time to comment.
Oi-Yee Choo states, “ADDX has become the focal point for Asian financial institutions that believe in building a new technology-driven infrastructure for private markets, to overcome inefficiencies in the traditional model. In these volatile times, with many investors waiting by the sidelines for more stability in the financial markets, our ability to raise capital demonstrates the momentum behind ADDX and its mission. Shareholders of ADDX are industry insiders with a keen understanding of the transformative, long-term value of this project that transcends near-term cyclical forces. ADDX has a clear lead among private market platforms in Asia – we have the technology, legal, regulatory and financial knowhow, as well as the strongest set of partners. KB Securities, which belongs to Korea’s biggest banking group, has now backed us – a truly exciting development, filled with potential and opportunity. Our clients will benefit from the innovation and dynamism one can expect when ADDX and KB Securities work hand in glove. We will grow together. We will be a collective force for good in Asia’s capital markets.”
Tokenizing Wine
To look for an example of what exactly ADDX can offer its clientele, look no further than its recently announced tokenization of a curated portfolio of vintage French wines.
In this deal, ADDX opens the door to fractionalized investment opportunities for a broad range of investors. This tokenization effort was undertaken hand-in-hand with Provenance Treasures – the company tasked with curating, and storing the portfolio of wines.
While wine may seem an odd choice for investment to some, it is exactly the point of digital securities. Such assets open the door for investment opportunities in asset classes typically inaccessible to the majority of investors, or boasting poor liquidity. Whether it be fine art, automobiles, real estate, or wine, there is opportunity for a return on investment in many asset classes with a strong history of appreciation.
In Other News
Beyond ADDX, there are a few companies involved with digital securities that have been making strategic moves as of late. One example of this is Archax, and its recently announced partnership with Ownera. With the goal of building out a regulated digital asset ecosystem, this partnership will see digital securities issued by Archax distributed across the Ownera FinP2P network.
The partnership between Archax and Ownera echoes a similar one we highlighted only weeks ago. At the time, we shared that Ownera and a company by the name of SDAX were also partnering to distribute digital securities across the formers network.
To learn more about Ownera, check out our recent interview with Anthony Woolley, Head of Business Development at Ownera.
