A a recent announcement a new Singapore-based cryptocurrency token exchange, called Hg Exchange, hopes to merge blockchain technologies with traditional equity securities, and even claims it may be able to tokenize shares of SpaceX, Uber, and AirBnB.
It was announced this week that crypto companies Zilliqa and MaiCoin have formed a partnership with the goal of creating a security token exchange that fuses blockchain technology with more conventional assets.
Zilliqa is scalable and secure blockchain platform created to host decentralized applications. On January 31, the company will launch its mainnet, enabling the tokenization process of private company shares on its network.
What CEO Xinshu Dong Says About HG Cryptocurrency Exchange
Xinshu Dong, Zilliqa co-founder and CEO, commented on the new exchange in a statement, saying “Within the private investment industry, blockchain can provide greater standardization, fractionalization, and enables trading on a regulated venue at lower costs.”
Xinshu also commented on the real-world application of blockchain technology, saying, “Rather than blockchain for blockchain’s sake, it’s important to look at how blockchain technology can solve existing challenges holding industries back.”
He added, “Our aim is to continue to focus on real-world use cases to accelerate the mainstream adoption of blockchain and move the industry towards meaningful growth.”
Zilliqa’s new partner, MaiCoin, is a Taiwan-based digital asset exchange platform that provides trading and payment services. MaiCoin is to build the exchange functions, including the matching engine and order book. It will also be responsible for some security functions, including multi-factor authentication and transaction signing technologies.
HG Exchange Aims To Be One-Stop Solution For All Token-Related Activities
Once built, the HG cryptocurrency Exchange is expected to become a “one-stop solution” for all token-related activities and will even provide traders access to privately held securities.
According to the announcement, “It is envisaged that Hg Exchange will provide access to high-growth startups and also decacorns such as Uber, Airbnb, SpaceX, Grab and Didi Chuxing, which are currently not within reach of the average investor.”
Hg Exchange will not be the first exchange to offer tokenized equity securities. A cryptocurrency exchange, DX.EXCHANGE, already claims to offer digital stock. According to its website, the company purchases in-demand stocks and then generates smart contracts in the form of ERC20 tokens to represent the stock.
Swarm, a blockchain startup, also offers a platform in which users can buy, sell and issue digital securities.
“The digital-first strategy adopted by Hg Exchange is envisioned to seamlessly connect private enterprises with the right investors, and also democratize the capital market by providing investors with a chance to participate alongside their institutional counterparts,” said Kevin Lee, CEO and co-founder of Fundnel.
Financial intermediaries interested in joining the exchange will need to be licensed by the Monetary Authority of Singapore.
At first, only institutional or accredited investors will be allowed to join Hg Exchange.