- Seamless integration between 1exchange (“1X”) and Accounting and Corporate Regulatory Authority (“ACRA”) share register via ACRA’s Transfer of Share APIs enables faster real time private share transfers and filings for private market participants and the Singapore business community.
- The seamless integration via ACRA’s Transfer of Shares APIs enables any Singapore-registered private limited company to access 1exchange’s private market features, including employee share trading and private share trading.
- Public blockchains Tezos and Ethereum are powering the 1X blockchain tech stack to support greater access for companies and investors in the private market share trading ecosystem; corporate services pioneer Boardroom Limited will administer long term incentive plans and interface with 1X to enable monetisation of participant remuneration.
SINGAPORE, June 28, 2021 /PRNewswire/ — Singapore’s first regulated blockchain-based private exchange, 1exchange (“1X”) today announced an ongoing blockchain-based share transfer public-private partnership (“PPP”) project with the Accounting and Corporate Regulatory Authority (“ACRA”). A suite of Application Programming Interfaces (“APIs”) including Transfer of Shares APIs now facilitates real time private share transfers and filings along with simultaneous direct updates of private company share information onto ACRA’s share register and 1X’s public blockchain systems. This integration bypasses the need for manual reconciliation of the share registry, enabling secure and convenient private trading of private company shares for all Singapore-registered Private Limited companies.
1X is the first Singapore private exchange built on a public blockchain to be granted the Recognised Market Operator license by the Monetary Authority of Singapore (“MAS”). The exchange is part of CapBridge Financial Group, which counts Singapore Exchange (“SGX”) and SGInnovate as its strategic partners and shareholders.
Participants in this PPP include private market service providers such as Boardroom Limited (“Boardroom”), one of the largest corporate secretarial firms in Singapore and a pioneer in Employee Share Plan administration, and other invited user participants such as Cloudsine Pte Ltd, Hybrionics Pte Ltd, and 3E Accounting Pte Ltd. This PPP also coincides with the beginning of private trading for MAS-regulated securities custodian Davos Custody Pte Ltd (“Davos“) on blockchain-enabled 1X.
Facilitating Direct Private Share Trading in a Robust, Regulated, and Secure Environment
The seamless integration between 1X and ACRA share register via ACRA’s Transfer of Shares APIs paves the way for easier and more convenient direct private trading of shares for any Singapore private limited company within a robust, regulated, and secure environment, as all private companies must notify ACRA of transfer of shares. With an alternative real-time and secure option for share trading and filings, company owners can also undertake more efficient liquidity exercises to raise capital, incentivise employees through share plans, and enable monetisation opportunities for early investors.
Mr. Choo Haiping, CEO of 1X, said, “By enabling private company share registration on select public blockchains and facilitating private share transactions within a robust blockchain environment, we can potentially increase the liquidity avenues for small and medium enterprises and their investors as the processes for share trading and filing are made even simpler and more convenient. We are pleased to continue working closely with ACRA and our other partners on this groundbreaking initiative to bring more benefits of the private markets to more private limited companies in Singapore.”
ACRA’s Divisional Director of Customer Experience Division, Ms Ang Siok Hui, said, “ACRA is pleased to collaborate with 1X to enable a seamless experience for filing and updating of share ownership information in our Business Register directly from source. This reduces the compliance burden for companies and improves timelines and accuracy of filing. We will continue to work with the private sector to enable more statutory filings to go seamless in the near future.”
With direct private share trading on the blockchain combined with seamless real time ACRA share registry updates, unlisted private companies can initiate and complete end-to-end share transfers to realign cap tables among early investors; and family businesses can facilitate share trading among family member shareholders in a secure, convenient, and transparent manner. Companies can choose certain share tranches to be made tradable within select predetermined groups and have the option to add further liquidity via a “light touch” private listing on 1X, where their shares will be tradable amongst approved 1X members.
This 1X-led project will also support unlisted private companies in accessing alignment, retention, and incentivisation solutions with the potential to design new performance-based schemes for talent and company growth.
Mr. Jason U, Head of Employee Plan Services for BoardRoom said, “This offering will bring about changes in mindset about creating liquidity in unlisted company ESOP/Share award schemes. Companies can now unlock real value for plan participants by providing periodic liquidity avenues that in turn deliver more lucrative and attractive plans for participants.” Boardroom will provide on-going administration of long term incentive plans and interface with 1X to enable monetisation of participant remuneration.
Mr. Ville Alexander Oehman, CEO of Davos Custody Pte Ltd, one of the first pilot users, said, “We are proud to be the first Singapore company to benefit from the integration of traditional share registry with blockchain technology. By having our shareholdings registered onto both ACRA’s register as well as the 1X blockchain system, we can securely and efficiently carry out shareholding exercises. As an early stage growth company, we can now potentially offer more robust staff share incentive schemes to attract and reward talent, as well as for investors to achieve liquidity in an orderly and transparent manner via trading on 1X.”
Choo further added, “We selected Tezos and Ethereum as both public chains are secure and battle-tested open-source technologies. They offer high liquidity options within their secure, globally distributed network of participants, and provide reliable and robust developer support. We are concurrently exploring further enhanced features on various public blockchains and we look forward to achieving more milestones together with ACRA, and to do our part for an even more dynamic and vibrant Singapore economy.”
1X is deploying these private trading enhancements alongside its live and regulated 1X Private Exchange Platform. The exchange intends to partner more corporate secretarial companies to jointly offer these services in a phased manner. Private trading and employee share trading services are expected to be made available to select companies under a soft launch in second half of 2021, before being rolled out to more participants.
A member of private markets ecosystem CapBridge Financial, 1X is the first MAS-regulated private securities exchange in Singapore and widely regarded as the third board in the global financial centre.
Built on the blockchain, 1X is a “light-touch” and cost-effective private listing venue designed for family businesses, as well as growth and pre-IPO companies. The exchange provides companies with market-oriented solutions such as direct private listings and employee share trading.
With a 1X listing, founders, owners, and growth stage companies can achieve partial exits and tradability in private shares while retaining flexibility and control. Private investors on 1X can freely and securely trade in and out of their positions to achieve liquidity anytime, anywhere.
For more information, visit https://www.1x.exchange