The private capital exchange, regulated in Singapore, uses blockchain technology to cut the minimum sizes that investors need to join asset classes such as private equity.

South Korean banking group KBFG has taken a stake in Singapore-regulated private market exchange ADDX as part of a $20 million funding round. 

KB Securities led the investment, which was part of an upsized Pre-Series B round. The round kicked off in May, when ADDX announced a $58 million fundraise involving new shareholders Stock Exchange of Thailand (SET), Hamilton Lane and UOB. 

The organisation uses blockchain and smart contract technology to “democratise” access to asset classes such as private equity and venture capital. Such technology allows ADDX to cut minimum investment sizes from $1 million to $10,000, widening investor access to assets which were once the preserve of the ultra-wealthy or large organisations. To that extent, ADDX is part of a wider trend of firms using technology to make it easier for investors to enter the space.

ADDX has raised $140 million so far. Its investors include Singapore Exchange, Temasek subsidiary Heliconia, Development Bank of Japan, SET, Hamilton Lane, UOB, Tokai Tokyo Financial Holdings, Kiatnakin Phatra Financial Group, Krungsri Bank, Hanwha Asset Management and Juroku Bank. 

Part of the newly-raised capital will go towards growing ADDX Advantage, the company’s wealth management platform launched earlier this year for private banks, brokerages and family offices. 

KB Securities and ADDX will explore possible tie-ups to expand private market services in Asia, including potential collaborations in Singapore or South Korea, ADDX said.