Singapore-based Cyberdyne Tech Exchange (CTX) announces it will launch the world’s first regulated digital exchange to be powered by Nasdaq technologies, for asset-backed tokens.
The tokens will represent fractional value in real assets including green infrastructure, equity, real estate, art, bitcoin and Ethereum.
CTX will allow qualified asset owners, accredited investors, institutions and corporations, to issue and trade in such digital assets by the second half of this year. It will also provide settlement and custody of the tokens.
The move to launch the exchange comes after the company received Capital Market Services licenses from the Monetary Authority of Singapore this month, approval-in-principle for a Recognised Market Operator license in December 2020, as well an exempt Payment Service Act licence.
Tokenising an asset using blockchain technology and smart contracts creates a security token that represents a share or ownership of a piece of the underlying asset, which is often of high value or is illiquid. The process makes the asset accessible to many more investors and allows issuers to raise funds in a cheaper, faster, and easier manner compared to a conventional IPO or bond offering.
Founded in 2018, CTX said it sees exciting potential in the issuing and trading of tokens of green assets, be it solar or wind farms, smart and sustainable buildings, green industrial parks, sustainable agriculture and zero emission mobility.
Dr Bai Bo, Executive Chairman and Co-Founder of CTX, said: “We believe security tokens will be the new equity and will drive the next wave of the digital economy. For investors, it paves the way for fractional ownership of hard-to-access investments and for businesses, it offers a new source of funding that is cost-efficient, trackable, and highly liquid.
“CTX will seamlessly connect mainstream financial institutions and accredited investors to innovative green assets on a robust exchange that will operate within the rigorous and progressive regulatory framework that Singapore offers.”
Dr Bai, a Chinese American, is also Chairman of Asia Green Fund (AGF), one of Asia’s first impact private equity funds with over US$2.0 billion assets under management.
AGF was founded in 2016 with a focus on tech-enabled green impact investments.
The OECD estimated that US$6.9 trillion per year in infrastructure investment would be required between 2017 and 2030, for the world to achieve the goals under the Paris Agreement of limiting the rise in global temperature to below two degrees Celsius.
Dr Bai added: “We are convinced that the future of exchanges is regulated, digital and green, and we want CTX to be the driving force for green financing.”
AGF has vigorously ensured that the carbon footprint of its investments is quantified and certified with independent agencies such as Bureau Veritas. Dr Bai said CTX will apply that same approach and will be the first exchange to require carbon emission disclosures for all assets traded on its system, allowing both issuers and investors to track the carbon footprint of the assets in their possession.
CTX’s trading architecture will deploy Nasdaq’s best-in-class matching and market surveillance engines, which are currently utilised by national exchanges, clearing houses, central securities depositories, and regulators in over 50 countries.
Like Nasdaq, CTX requires all issuers to satisfy its listing standards that include both qualitative and quantitative criteria. All issued asset-backed tokens are priced via CTX’s proprietary book building process to ensure transparency.
AGF recently invested an additional US$15 million in CTX whose two other co-founders are Gabriel Wong, a Singaporean who was formerly an investment banker, and Lily Hong, Founder and CEO of a data security technology service provider for industrial IoT applications.
Cyberdyne Tech Exchange (CTX) is a digital exchange licensed and regulated by the Monetary Authority of Singapore and powered by Nasdaq’s advanced trading and surveillance technologies. Founded in 2018, it provides qualified asset owners and institutional investors with a full-service infrastructure including primary issuance, secondary trading, settlement, and custody of asset-backed tokens. Singapore-based CTX aims to be a global hub for green financing and will be the first exchange to incorporate carbon disclosures for both issuers and investors.