Before the development, only traditional assets like stocks, bonds, cash and real estate could be used for an individual to have access to complicated investment options in private markets, ADDX said.
See related article: ADDX, Fullerton partner to tokenize PE fund of funds
- ADDX’s move signals crypto’s status as an asset class in the mainstream, the company said.
- While crypto assets are not currently recognized as income or financial assets, they can be recognized under the third category of net personal assets, ADDX said.
- It will pave the way for more individuals to qualify as “accredited investors” as defined by the Monetary Authority of Singapore (MAS).
- The regulator allows only such high net worth individuals to be sold more “sophisticated investment products” in private markets.
- ADDX will recognize only cryptocurrencies with a higher market capitalization and will apply a discount rate when valuing the assets.
- “At a time when the markets are volatile, this move is also designed to enable crypto investors to diversify into the regulated private markets, which tend to be more stable across different phases of market cycles,” ADDX CEO Oi-Yee Choo said.