A new private blockchain-powered exchange has been announced today, with the potential to substantially improve trading in private securities.
A joint project between blockchain software company ConsenSys - headed by Ethereum co-founder Joseph Lubin, and private financing platform CapBridge, the new platform “1exchange” will be based in Singapore - and is designed to make it easier for private shareholders to improve their exit options.
In a statement on Tuesday, the two companies explained how the new platform will improve the space:
"By providing another option for stakeholders, employees, and early investors to exit, 1X will create a new global market for secondaries...In the longer term, this will encourage active capital recycling and promote more liquidity throughout the capital market. Early investors and family owned business can also benefit from a partial liquidity."
Enjoying the support of the Singapore Exchange (SGX), the new platform has been lauded in terms of blockchain technology’s potential to reduce inefficiencies in record-keeping, KYC (Know Your Client) and AML (Anti Money Laundering) checks - features which other exchanges such as the Tel Aviv stock exchange have also recently embraced.
Johnson Chen, CapBridge's CEO and founder explained:
"Our private exchange will add to the robustness of capital markets and complement the suite of capital raising options available today, to create a virtuous cycle of capital and growth."
Vinay Mohan, ConsenSys Singapore's managing director, also acknowledged the importance of the new venture - explaining how it is "testament to the climate of technology innovation and adoption in Singapore".