CapBridge Gets Green Light from MAS to Operate Private Securities Exchange

Fintech startup CapBridge said that the Monetary Authority of Singapore approved its blockchain-based exchange platform focused on private companies.

Singapore-based fintech firm CapBridge announced on Thursday that it had received the green light from the Monetary Authority of Singapore (MAS) for its related entity CapBridge Platform. The approval means that CapBridge Platform’s exchange, called 1exchange (1X), can operate as a securities exchange under the status of a Recognised Market Operator (RMO). The exchange will be developed by CapBridge on the public Ethereum blockchain in collaboration with ConsenSys. According to CapBridge, 1X will be a fully regulated and secure platform that will also host services like listing and trading of security tokens.

In June of this year, we reported that CapBridge partnered with New York-based ConsenSys to develop 1X. At that time, the two companies announced that the new blockchain-based exchange platform would be built with the support of Singapore Exchange (SGX). At that time, CapBridge said that the platform would revolve around exit options for private companies’ shareholders.

In Thursday’s announcement, the fintech firm stated that 1X would have a unique private exchange structure, which is meant to boost liquidity for private companies before exit events like mergers and acquisitions or initial public offerings (IPOs). 1X-listed firms will keep private and will benefit from more control and flexibility.

CapBridge founder and CEO Johnson Chen commented:

“The CapBridge private capital platform has a track record of successfully helping global growth companies raise capital, and providing private investors access to such investment opportunities. With the RMO exchange license, we can now offer an even more integrated suite of private capital services to deserving companies seeking growth capital and sophisticated investors looking for alternative growth options.”

“Our holistic approach will enhance capital flow for growth companies and improve liquidity options for private investors, benefiting the wider capital market ecosystem in the process. We have been in close consultation with the MAS and deeply appreciate their support of our goal to contribute to a more vibrant Singapore private capital environment,” Chen added.

The RMO license takes effect on November 21 of this year.

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