Earlier this month, SGX, “a full-service equities, fixed income, derivatives, commodities, and foreign currency exchange,” welcomed 1exchange, the country’s first licensed private securities exchange for accredited investors. According to Investopedia, SGX formed when the Singapore Stock Exchange, the Singapore International Monetary Exchange and Securities Clearing and Computer Services Pte merged in 1999. The 1X platform is built on the Ethereum mainnet, a “public blockchain” hosted on the Internet that allows for global trading of “tokenized assets” and 24-7 access to markets. As part of the launch, “Singapore-based boutique fund management company Aggregate Asset Management” listed its “AAM” token on 1X, which collectively represents, “over SGD 5.6 million worth of tradeable private equities representing approximately 5% of the company’s share equity.” SGX and 1X marked the occasion with, “a gong-striking ceremony held in conjunction with SGX’s Daily Securities Market Opening in SGX Centre.” The Monetary Authority of Singapore (MAS) also supports the growth of a private market ecosystem. MAS has also committed to allocate USD 5 billion of its own funds to invest in the private markets’ asset class.

Choo Haiping, CEO of 1X, said, “1X is grateful for the support of our many stakeholders, including regulators, SGX, our partners in the financial industry, and the companies and investors who continue to believe in our mission to create a dynamic and vibrant private capital market through tradeable private equities.”

The 1X (www.1x.exchange), will allow private companies to list up to 30% of their shares, “in the form of tradeable private equities.”

Private stock exchanges allow firms to sell partial equity without having to undergo an IPO, which can be prohibitively expensive and not available to smaller-sized firms.

David Kuo, CEO of the Motley Fool Singapore, and Robson Lee, a partner at law firm Gibson Dunn in Singapore told Channel News Asia that private stock exchange listings could be used to allow an accredited investor to own a piece of their favourite restaurant, for instance.