ADDX accepts crypto assets of accredited investors
It is the first financial institution to do so in Singapore.
Trading platform ADDX announced it will be recognising the cryptocurrency assets of accredited investors, the first in Singapore.
According to ADDX, the move is expected to allow more individuals to qualify as accredited investors.
“With a large minority of investors owning crypto, it is reasonable for these digital assets to be recognised as a part of one’s portfolio – not unlike any other assets that can be valued in the marketplace, such as real estate or equity,” ADDX CEO Oi-Yee Choo said.
Citing the Global State of Crypto Report by Gemini, ADDX said that crypto ownership increased by more than 80% in 2021. In particular, ownership rates stood at 30% in Singapore, 24% in Hong Kong, 20% in the US, 18% in the UK, and 17% in Germany.
In line with its move to accept crypto owners, ADDX provided that it will only recognise Bitcoin, Ether, and USDC. ADDX will apply a 50% discount rate for Bitcoin or Ether, and 10% for USDC.
ADDX also noted that to qualify as accredited investors, individuals must prove that thay own a net personal asset of at least SG$2m after the inclusion of the crypto assets with the discount rate.
“These steps form part of a more strategic and comprehensive crypto roadmap for ADDX,” Choo also 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.”