CapBridge, a blockchain app developer and fintech firm, partnered with New York-based ConsenSys to apply blockchain technology for a private exchange that is about to be built in Singapore. 1exchange (1X), as the upcoming platform is called, will be developed with the support of Singapore Exchange (SGX), and other shareholders. The platform will focus on exit options for shareholders of private companies.
CapBridge CEO Johnson Chen and ConsenSys founder Joseph Lubin
“By providing another option for stakeholders, employees, and early investors to exit, 1X will create a new global market for secondaries,” the companies stated on Tuesday.
“In the longer term, this will encourage active capital recycling and promote more liquidity throughout the capital market. Early investors and family owned business can also benefit from a partial liquidity,” the two blockchain firms added in their joint statement.
The exchange will leverage blockchain technology to improve record-keeping processes, know-your-customer practices and anti-money laundering (AML) practices, and reconciliation.
CapBridge CEO Johnson Chen said that the platform would contribute with new investment products in the range of options available today to develop a “virtuous cycle of capital and growth.”
ConsenSys Singapore’s managing director Vinay Mohan stated that the collaboration with CapBridge is “a testament” to technological innovation in the Asian fintech hub.
CapBridge was founded in 2015 with the support of SGX. Now it provides institutional and accredited investors with access to VC financing and pre-IPO placement deals, thus supporting startups during their growth. The famous US venture capitalist Tim Draper is also backing CapBridge.
Last month, the company announced that it had secured S$5 million in a funding round.
The infrastructure for the upcoming exchange will be built on Ethereum mainnet, according to Joseph Lubin, co-founder of Ethereum and founder of ConsenSys.
Last week, we reported that ConsenSys won a United Nations (UN) competition to create an ID platform that is to be applied in Moldova to fight child trafficking.
This article appeared first on Cryptovest
