SINGAPORE - Global private capital platform CapBridge has received approval from the Monetary Authority of Singapore (MAS) for its associated entity, CapBridge Platform, to operate a securities exchange as a recognised market operator (RMO) in Singapore.
This will make the exchange, called 1exchange, among the first regulated private securities exchanges in Singapore, said CapBridge in a press release on Thursday (Nov 22).
A previous attempt by FundedX to create a private stock exchange for trading start-up equity and privately held companies in South-east Asia was shelved because of a failure to obtain a licence from MAS. In August, crowdfunding platform FundedHere said its new platform FundedX will not be operating until it has received the relevant authorisation, upon discovering that the business model is not licensed under FundedHere's current licence.
The 1X private exchange structure is designed to catalyse liquidity for private companies, prior to an exit event such as an IPO or an M&A. Companies listed on 1X remain private and enjoy more control, greater flexibility and lower costs as compared to a public listing, said CapBridge.
Johnson Chen, founder and chief executive officer of CapBridge, said: "With the RMO exchange license, we can now offer an even more integrated suite of private capital services to deserving companies seeking growth capital and sophisticated investors looking foralternative growth options. Our holistic approach will enhance capital flow for growth companies and improve liquidity options for private investors, benefiting the wider capital market ecosystem in the process."
CapBridge and 1X will be able to help companies such as private operating companies seeking capital, or preparing for liquidity events; late-state, venture-backed companies with shareholder and employees seeking to monetise their shareholdings; and family owned businesses seeking to diversify shareholder base or planning for management transitions.
In due course, the exchange will also offer the listing and trading of security tokens as CapBridge and global blockchain technology firm ConsenSys are working to develop afully compliant private securities exchange built on the public Ethereum blockchain.