CapBridge, an online investment platform that helps growth-stage companies raise funding, has today announced it has been approved by the Monetary Authority of Singapore to operate as private securities exchange a Recognised Market Operator (RMO).
The private securities exchange 1exchange, or 1x, will enable private companies listed on the exchange to access higher liquidity, which they would need in the event of an IPO or an M&A situation.
“Companies listed on 1X remain private and enjoy more control, greater flexibility and lower costs as compared to a public listing,” said an official press release.
In addition, this exchange will allow shareholders and employees of venture-backed companies to monetise their shareholdings. By opening the door to other private investors, 1x would also help family-owned businesses diversify their shareholder bases or plan for management transitions.
“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,” said Johnson Chen, founder and CEO of CapBridge.
CapBridge is one of the first few companies operating a central bank-approved securities exchange in Singapore.
Previously, crowdfunding platform FundedHere’s attempt to launch a private stock exchange was halted when it realised it did not have the market operator license from MAS (although its fundraising platform is approved by MAS).
“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; as a fully-compliant and secure exchange platform, we will continue to work closely with MAS to uplift the capital ecosystem,” said Chen.
CapBridge is also working with ConsenSys, a blockchain company founded by Ethereum Co-founder Joseph Lubin, to develop a fully compliant private securities exchange built on the public Ethereum blockchain.
The goal is for this exchange to provide the listing and trading of security tokens in a regulated and secure environment.