ECXX, a digital asset exchange operator using blockchain technology, today announced that it has secured an admission from the Monetary Authority of Singapore (MAS) to the Fintech Sandbox Express under the Recognised Market Operator (RMO) regime.
With the approval, ECXX targets the launch of the blockchain-based digital securities exchange platform ecxx.co, which offers various asset-based digital securities such as real estate, private equity, venture capital, and investment funds to institutional and accredited non-individual investors.
The tokenization of assets refers to the process of issuing a blockchain token (specifically, a security token) that digitally represents a real tradable asset (such as real estate) – in many ways similar to the traditional process of securitization.
These digital securities could represent a share in the ownership of a real estate, a share in the ownership of a company, or participation in an investment fund. These digital securities can then be traded on a secondary market.
With its own in-house proprietary system, ECXX has been operating a digital asset exchange that allows both professional traders and retail investors to buy, sell, and store digital assets. Its digital exchange platform is integrated with MyInfo, the one-stop Singapore government identity platform. This integration allows seamless Know-Your-Customer checks on members of MyInfo who can log-in to ECXX’s digital asset exchange using their SingPass.
ECXX has also applied for a license under the Payment Services Act and once approved, it will be the first exchange in Singapore to offer both digital payment tokens and digital securities under two different platforms.
Led by an experienced management team well versed in digital assets and blockchain ecosystem, ECXX has been backed by prominent venture capital firms CapitalX, Epsilon Investment, Ariki Asia and ChainUp.
In June 2020, Hatten Land announced a proposed investment of US$6 million for a 20% equity stake in ECXX.
Commenting on this milestone, Mr. Branson Lee, Chief Executive Officer of ECXX, said: “There are a multitude of applications of blockchain technology within the financial industry, and the tokenization of assets has the potential to fundamentally change how we invest in assets.
“With S$3.4 trillion of assets under management in Singapore, we aim to utilize the Recognised Market Sandbox admission to develop our securities exchange platform and create asset-based securitized tokens that can be regulated and traded, paving the way for mainstream adoption.”