SDAX, a Singapore-based integrated digital investment and trading platform regulated by the Monetary Authority of Singapore (MAS), has officially launched on Tuesday.
SDAX said in a statement that it offers access to curated institutional-grade investments focusing on real estate and environmental, social, and governance (ESG) to institutional, accredited and retail investors.
This follows its S$24 million ($17.3 million) Series B funding round in late 2021, with investors PSA International, Straits Trading Company, and New Horizon Global.
According to the statement, the digital investment platform provides accredited and retail investors, family offices and institutions with digital investments that are backed by real assets.
This is enabled through primary and secondary market mechanisms regulated by the MAS, with both Capital Markets Services (CMS) and Recognized Market Operator (RMO) licenses.
“The market demand for investments is shifting. Investors are discovering new opportunities in digital assets for higher, long-term gains in bull and bear markets. Focusing on real estate, corporate finance and ESG, we offer a curated suite of high-quality investments sought after by institutions, accredited and retail investors,
“We are also incorporating a risk-based ESG framework for projects that supports the initiative Financing the Transition to a Net-Zero Future (FTT). At SDAX, we are leading the way in the transformation of investment access with digital securities,” said Raymond Poh, Chief Executive Officer, SDAX.
According to the statement, real estate is the world’s biggest asset class, worth over $270 trillion. Investments in Singapore’s real estate market totaled S$25.8 billion ($18.59 billion) in 2021, a 5.3 percent year-on-year increase from 2020.
SDAX partners with companies to raise funds in a fast, secure, cost-effective way through blockchain technology. A focus on enterprises that are delivering innovative solutions to meet market needs is emphasized, and SDAX helps them unlock their business and asset value.
Its digital securities are high-quality private investment deals that are put through a rigorous due diligence process based on a sound financial control framework. After tokenization, they are then fractionalized on the SDAX exchange, opening a more diversified portfolio with accessible minimum investment amounts.
“SDAX is democratizing investment opportunities for a larger pool of investors through purposeful financial innovation, generating wealth based on real assets. We are evolving the investment industry by partnering with corporations and institutions to raise funds more efficiently, while strengthening the
governance of such investment opportunities for the public market,” said Khoo Boon Hui, Chairman, SDAX Exchange.
The platform leverages strategic partnerships with shareholders PSA International, ESR (Asia Pacific’s largest real asset manager), Straits Trading Company, RHT Group and other institutional partners to access a large private pool of investment opportunities and provide access to asset-backed securities that are institution-grade.
An example is investors can now co-invest in a data center discretionary fund, together with the world’s largest sovereign wealth and pension funds, on SDAX.
“We look forward to our partnership with SDAX in creating opportunities that align with our decarbonization goal, leveraging on leading financial products and investment solutions that will drive sustainability related investment opportunities positively,” said Tan Chong Meng, Group Chief Executive Officer, PSA International.
Cited MSCI 2021 Global Institutional Investor survey, SDAX said in Asia-Pacific, about 79 percent of investors have increased ESG investments “significantly” or “moderately” in response to Covid-19. Likewise, increased awareness of climate change issues and changing investor preferences have contributed to the rise in ESG investments in Singapore.
Paving the way towards a more authentic and conscientious framework in which to drive ESG investing, SDAX’s in-house ESG team is pioneering a risk-based listing process on evaluating investment opportunities towards a net-zero future.