The 1X platform went live on Wednesday (June 10,2019). The goal of 1X is to provide an IPO-like platform but for private companies to raise capital and to increase liquidity in the primary capital market by using a public blockchain to validate transactions.
About 1X Platform
1X was set up by Capbridge, a Singapore-based exchange for primary market stock offerings. SGX, meanwhile, is a strategic investor in 1X, meaning the stock exchange not only has an equity stake but is also involved in business operations.
Taking things forward, the 1X platform announced its first listing of an ethereum token, purchasable with Singapore dollars. The token represents about 7 percent of the shares of a Singapore fund manager called Aggregate Asset Management (AAM). Investors in the round received the corresponding ethereum tokens to account for their ownership, which is now tradable on 1X.
Role of Consensys
Consensys, the New York-based blockchain software studio started by ethereum co-founder Joseph Lubin, has helped 1X design a solution to issue what are called “modified ERC-20 tokens“ to satisfy interoperability needs and regulatory requirements. This design would further allow the transactions of the securities-backed ethereum tokens to be visible on the ethereum network like any other ERC-20 tokens.
1X’s CEO, Haiping Choo said “The overall idea is to bring liquidity to an otherwise historically illiquid assets. We are starting off with private companies. In the future, we intend to apply the same workflow to other illiquid assets like bonds or real estate, etc.”
“When we designed this, we designed it to be a fully compliant, scalable and standardized way to onboard global companies and investors. Because the assets we are offering are securities, which are the most highly regulated asset class.” added Choo.