Binance invests in Singapore private exchange for token assets

Binance invests in Singapore private exchange for token assets
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(Dec 8): Binance Asia Services, the Singapore entity of Changpeng Zhao, said it made an investment in a regional private securities exchange called Hg Exchange (HGX) that gives it a post-money stake of 18%. 

“Through this investment, we seek to work with HGX in enhancing offerings of products and services supported by blockchain technology,” said Binance Singapore chief executive officer Richard Teng. Financial offerings in the traditional form and crypto assets are converging, Teng said in a statement on Wednesday (Dec 8). A post-money valuation is the firm’s worth that includes the outside investment. 

Binance’s stake in HGX, which is based in Singapore and backed by PhillipCapital and PrimePartners Group, gives the crypto firm access to a regulated market operator as HGX has a licence to trade shares in private companies, as well as tokenised assets including rare whiskey. Binance Asia is among firms seeking a licence to operate a cryptocurrency exchange from the Monetary Authority of Singapore.

PhillipCapital is one of the major brokerage firms in Singapore and manages more than US$35 billion (about RM147.86 billion) of clients’ assets, according to the firm’s website. PrimePartners Group, also based in the city state, focuses on fund management and capital markets. Fundnel, the other stakeholder of HGX, is an investment platform for trading private company shares, as well as fundraising.

The HGX acquisition is subject to regulatory requirements, Binance said.

Binance Singapore will continue to work closely with key government agencies to support the growth of the blockchain ecosystem, said Teng, who was the chairman of HGX before taking the helm of Binance Asia in August.

Founded in China in 2017, Binance Holdings Ltd hasn’t set up a global base yet. Instead, Zhao has incorporated firms in locations where Binance operates, including in Singapore, where he’s been based for two years. 

Zhao recently told a Bloomberg forum that Binance had decided on a location for its global headquarters and will announce it after he communicates with regulators.