Singapore’s ADDX Recognizes Crypto for Accredited Investors

ADDX said it has become Singapore’s first financial institution to allow investors to gain accredited status by way of crypto

article-image

Singapore skyline. Source: Shutterstock

share

key takeaways

  • Cryptocurrency can be used to deem an individual as an accredited investor in Singapore recognized as net personal assets
  • An accredited investor needs to meet one of three criteria above a particular financial threshold to qualify

Capital markets platform ADDX said Wednesday it has become the first financial institution in Singapore to recognize cryptocurrency for the purposes of onboarding accredited investors.

In a statement, ADDX said it will begin recognizing bitcoin, ether and USDC for individuals as part of the city–island-state’s “accredited investor” status. Under Singapore law, investors seeking accreditation are required to meet a certain threshold to be granted access to particular financial products.

An accredited investor is an individual with a special status under financial regulation laws with differing regulations depending on the country or jurisdiction.

One of three criteria qualify an investor for such a status in Singapore including if their income in the previous 12 months exceeds SGD 300,000 (US$218,000), or their net worth of financial assets exceeds SGD 1 million (US$727,000). A third option, that an individual’s personal assets exceed SGD 2 million (US$1.45 million), also counts.

Cryptocurrency is not currently recognized within the city-island-state as either income or financial assets though they are recognized as net personal assets. ADDX said it will implement appropriate risk management measures within the eyes of the law, taking into account price volatility.

Monetary Authority of Singapore-regulated ADDX also said it will only recognize cryptos with a higher market capitalization and will apply a discount rate when valuing the assets to offset any potential risk.

“With a large minority of investors owning crypto, it is reasonable for these digital assets to be recognized as a part of one’s portfolio,” said ADDX’s CEO Oi-Yee Choo in the statement. “Recognizing crypto holdings helps us to serve a much wider segment of investors.”

Founded in 2017 with operations commencing in 2020, ADDX has grown to become one of Southeast Asia’s largest private market platforms by total trading volume, offering assets not readily available on public exchanges.

Leveraging the use of blockchain tech and smart contracts, the platform tokenizes a wide array of assets from equities to bonds as well as pre-IPO equity and hedge funds.

Choo added that reaching an understanding between crypto tech and traditional finance had positioned the firm ahead of typical offerings by enabling it to bridge two worlds.

Choo was appointed as the platform’s head in March in a move from UBS, where she was charged with leading the bank’s investments in Singapore.

“Investors increasingly expect a seamless view of their complete holdings because their traditional wealth and crypto wealth ultimately belong to a single portfolio,” she said.  “In time to come, we are likely to enable customers to fund their investment wallets with cryptocurrencies and to convert their assets between fiat currencies and crypto.”


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the Forward Guidance newsletter.

Get alpha directly in your inbox with the 0xResearch newsletter — market highlights, charts, degen trade ideas, governance updates, and more.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 18 - 20, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Unlocked Advisory.jpg

Research

ACP-125 represents a strategic opportunity to enhance Avalanche's competitive position in the Layer-1 blockchain ecosystem. Based on our previous ACP-77 analysis paired with an analysis of ACP-125, Avalanche is prioritizing kick-starting growth and network effects in its ecosystem while trading off short-term value accrual.

article-image

Institutional adoption “moves slower than we want,” exec says, but could follow “an exponential curve from Q1 onwards”

article-image

FTX is still in bankruptcy proceedings, but the process is set to come to an end fairly soon

article-image

“BIO can be thought of as a Y Combinator for onchain Science,” Binance said in a statement

article-image

In case you missed it, BitGo last week appointed the former president of Silvergate Bank as part of its push into stablecoins

article-image

Plus, TapSwap plans to solve tap-to-earn with an all-new Web3 gaming platform

article-image

There are a few possible outcomes now that Trump will be moving back to Washington in January