GIC, Singapore’s sovereign wealth fund, has taken a US$70 million stake in fintech and digital asset company BC Group — the parent company of Hong Kong’s first licensed cryptocurrency exchange OSL, according to an HKEX announcement today.

Fast Facts:

  • According to the announcement, GIC will acquire 31,952,500 shares, representing approximately 8.25% of the issued share capital of BC Group.
  • OSL, part of the BC Group, was the first digital asset platform to receive virtual asset trading and brokerage licenses from the Securities & Futures Commission of Hong Kong in December. The company has also applied for a license under Singapore’s Payment Services Act. In 2020, OSL signed Singapore’s DBS Bank as a technology client for its digital asset platform, according to OSL’s 2020 annual results.
  • The total cryptocurrencies market cap currently stands at US$1.6 trillion, according to CoinGecko. Institutional interest in the industry has been growing from listed companies like MicroStrategy, Tesla and Meitu acquiring Bitcoin for their corporate treasury, to the launch of Bitcoin and Ether exchange traded funds, and traditional banks like DBS Bank offering crypto to customers by launching its own digital exchange.
  • Established in 1981, GIC manages Singapore’s foreign reserves invests globally in equities, fixed income, private equity, infrastructure and real estate among others. GIC is ranked ninth and estimated to have US$550 billion assets under management, according to consulting firm Global SWF‘s Top 100 sovereign wealth funds list.