(Bloomberg) — Private-market exchange ADDX will now recognize some cryptocurrency holdings from investors seeking to gain access to its platform, amid what it sees as record levels of crypto ownership around the world.
ADDX will start acknowledging three coins — Bitcoin and Ether at a 50% discount rate, as well as USDC at a 10% discount rate — as part of its process for verifying so-called accredited investors, according to a statement from the firm on Wednesday. The coins and discount rates will be reviewed at regular intervals and may be revised as conditions change, said ADDX, that counts the likes of the Singapore Exchange Ltd. and United Overseas Bank Ltd. as shareholders.
“Cryptocurrencies are here to stay. They no longer exist only on the fringes of wealth and investment conversations,” ADDX’s Chief Executive Officer Oi-Yee Choo said. “It is reasonable for these digital assets to be recognized 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.”
Cryptocurrency adoption has grown worldwide, though prices of Bitcoin, Ether and many altcoins have struggled in the past few months as the Federal Reserve hikes rates and riskier assets have tumbled. ADDX’s move within Singapore also comes as top officials in the country repeatedly warn retail investors they should avoid trading digital assets.
Under the city-state’s regulatory regime, individuals have to meet one of three criteria to qualify as accredited investors. For example, they must have more than S$300,000 ($218,181) of income over the past 12 months, net financial assets over S$1 million, or net personal assets topping S$2 million. Crypto assets can be recognized under the third category of net personal assets.
In future, “we are likely to enable customers to fund their investment wallets with cryptocurrencies and to convert their assets between fiat currencies and crypto,” Choo said.
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