ADDX tokenises first private credit fund

Blockchain chainSingapore-based private market exchange ADDX has announced the tokenisation of a private credit fund from Singapore-based investment manager SeaTown. It is the first such fund on the platform to have been tokenised. As a result, the fund’s minimum investment size has been reduced from US$5 million to $20,000, a move that the exchange states enables “rare fractional access to a private credit fund with more than $1 billion in committed capital.  “Giving individual investors access to this burgeoning asset class resonates strongly with ADDX’s mission of democratising the private markets,” said Oi Ye Choo, chief commercial officer at ADDX. “It is not feasible for an investor with a net worth between $2 million and $20 million to enter a private credit fund with a minimum ticket size of $5 million. But at a $20,000 minimum, that same investor is able to take part in this previously-inaccessible asset and benefit from the enhanced portfolio diversification.” In addition to the lowered investment threshold, the issuance of security tokens or digital securities is designed to make the fund easier to administer through the use of blockchain technology and smart contracts. Private credit or debt funds are currently much in demand. According to Preqin, private credit assets under management have more doubled in the past decade, from $315 billion to $848 billion, and are expected to reach $1.46 trillion by 2025. ©2021 funds global asia

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