Blockchain software technology company ConsenSys and online capital-raising platform CapBridge Pte. said Tuesday they are working together to create 1exchange, a private exchange powered by blockchain technology to be launched in Singapore.
This exchange won’t be competing with the Singapore Exchange, because the latter is one of the backing investors in the new project. The private 1exchange, according to the press release, is intended to “improve exit options for shareholders of private companies.” It will allow people holding stakes in private companies to sell them to qualified investors ahead of an IPO or acquisition by a publicly traded company. No timeframe was given as to when this secondary market would be open for business.
Where does blockchain come in? The backers think a blockchain-powered private exchange can use distributed ledger technology to reduce inefficiencies in record-keeping and fight money laundering, among other tasks. Using blockchain might also allow the private exchange to tap into global liquidity and asset pools more securely. Read more at www.1x.exchange.