Taiwan’s largest digital asset platform MaiCoin has announced that it had established Hg Exchange under a joint venture with Zilliqa, a public blockchain platform in Singapore. Hg Exchange is the first member-driven exchange in Southeast Asia to support the issuance and trading of private company shares, including security tokens. The exchange represents a collaborative industry effort between established capital market intermediaries and emerging innovators from the fintech sector.
Hg Exchange has submitted a FinTech Regulatory Sandbox application to the Monetary Authority of Singapore (MAS). The industry-backed effort promotes transparency by sharing transaction data amongst market makers and private companies, creating efficiency for the general market. This is an innovative business OTC model, and investor trading is more secure under the supervision of the Singapore government. For investors, this brings unparalleled access to invest into high-growth companies such as Airbnb, Deliveroo, Didi Chuxing, GoJek, Grab, Pinterest, SpaceX and Uber. Hg Exchange solves the perennial problem many shareholders of private companies face by presenting a single destination to help monetise their stake.
Powered by MaiCoin and Zilliqa, Hg Exchange will bring together cutting-edge technology and far-reaching solutions, with the blockchain layer enabling ease of trading and settlement, and the potential to verifiably secure stored assets. Taiwan’s largest and longest running digital asset platform, MaiCoin will be responsible for building the exchange functions from the matching engine to the order book. With a reputation as one of the most secure exchanges, MaiCoin will provide a secure and intuitive front end. With its mainnet launch imminent, Zilliqa employs sharding as an on-chain solution to preserve decentralization and enable scalability. Its proprietary smart contract language is amenable to formal verification, thus providing enhanced security for assets.
In 2018, the MaiCoin Group applied for the platform sandbox of Taiwan’s “STO” (STO) under the platform of its MAX exchange platform “MAXST”. While waiting for Taiwan’s STO supervision sandbox review, MaiCoin teamed up with Zilliqa. Taking the lead in building the first STO exchange in Southeast Asia, MaiCoin has enabled the world to see Taiwan’s blockchain technology and talents. Not only that, but the STO exchange provides a new way of fundraising, and the company is on the shelves. This can be used to raise funds, seek better development opportunities, and help the industry upgrade.
Alex Liu, CEO of MaiCoin said, “The intersection of blockchain technology with traditional asset classes such as private equity promises to globalize and liquefy previously illiquid assets. The attendant liquidity premium that will be enjoyed by all market participants will be delivered only through a combination of innovative technology and prudent regulation. Having worked closely with financial institutions in Taiwan to serve the retail markets, we look forward to partnering with the world-class team of Zilliqa and Fundnel to serve the institutional market in Southeast Asia.”
“The distinctive structure of the member-driven exchange, places Hg Exchange in a prime position to offer new opportunities for our investors, and a chance to participate alongside institutional investors,” said Mr. Luke Lim Executive Director of Phillip Securities.
“Private exchanges are a natural complement to Singapore’s financial ecosystem attracting innovative tech companies and connecting investors to new opportunities. We believe that Hg Exchange will add vibrancy and depth to Singapore’s equity capital markets,” said Mr. Mark Liew, Chief Operating Officer of PrimePartners.
“With the increasing investment demand for breakthrough technology, the STO has gradually become another new option for IPOs and the open market. Hg Exchange will provide the availability of STO and transactions, increase market liquidity and cost efficiency, and allow the value of a wide range of assets to be released from traditional markets,” said Mr. Jayaprakash Jagateesan, CEO of RHT Capital.
Kelvin Lee, co-founder and CEO of Fundnel, also believes that private exchanges such as Hg Exchange is a crucial step towards invigoration of the local investment scene, attracting global companies and financial talent into the region.
Xinshu Dong, CEO and Co-Founder of Zilliqa said, “Rather than blockchain for blockchain’s sake, Hg Exchange is a prime example of how Zilliqa is working with industry partners on innovative blockchain solutions that bring real value-add to users, and to disrupt and advance traditional sectors like finance.”
Hg Exchange is envisioned to replicate the success of existing private exchanges such as the Nasdaq Private Market, which set a new record in transaction volume in the first half of 2018, which saw deal volume growing by 74% and exceeding S$14B (US$10B) for the first time.
Hg Exchange will be accessible only to institutional and accredited investors and will operate on a membership only basis for licensed or registered market participants. All interested parties are invited to register with Hg Exchange prior to its official launch in mid-2019. For more information, please visit www.hg.exchange.
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