ADDX tokenises private credit fund backed by Temasek

Singapore-based non-public market change ADDX has tokenised a personal credit score fund by Temasek-owned SeaTown lowering the fund’s minimal funding measurement from $5m  to $20,000.

The change mentioned this was the primary non-public fund to be tokenised on its platform and this newest growth expanded the universe of potential traders into non-public credit score.

“It’s not possible for an investor with a internet price between US$2 million and US$20 million to enter a personal credit score fund with a minimal ticket measurement of US$5 million. However at a US$20,000 minimal, that very same investor is in a position to participate on this previously-inaccessible asset and profit from the improved portfolio diversification,” mentioned Oi Yee Choo, chief business officer of ADDX in a press release.

Not directly owned by Temasek

ADDX mentioned SeaTown Personal Credit score Feeder Fund LP is a close-ended, four-year fund focussed on extending non-public credit score to firms within the Asia-Pacific area.

Fund supervisor SeaTown is not directly owned by Singaporean funding agency Temasek Holdings. It manages 5 funds with $6bn in complete belongings below administration, as of 30 June.

“Within the aftermath of the Nice Monetary Disaster of 2008, the expansion of personal credit score funds has accelerated partly as a result of conventional lenders reminiscent of banks have taken a extra conservative stance on lending. Amid this growth, we will see the non-public credit score fund house maturing and attracting a deep pool {of professional} expertise,” mentioned Choo.

Disrupting the multi-trillion-dollar bond market

Earlier this month, Choo informed Capital.com that the fractionalisation potentialities provided by token expertise powered by blockchain is about to disrupt the worldwide bond market.

“ADDX sees the bond market as more and more disruptive with digitisation as a result of it is so inefficient immediately. The minimal measurement you increase by a bond is roughly $250m. And for lots of the smaller firms that is too massive and too costly,” Choo informed Capital.com.

On Monday, ADDX mentioned the reducing of minimal funding measurement for its first tokenised non-public credit score fund will assist diversify the investor base of personal credit score funds, which have historically been designed to serve institutional capital.

Learn extra: Token technology set to disrupt $128trn global bond market

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