CBC Bank announces a strategic partnership with ADDX, a global private market exchange, to offer a tokenized equity-linked structured note to accredited investors. This collaboration marks the first direct product tie-up between ADDX and a Singapore bank. The note launched on the ADDX platform, is linked to shares of a prominent US-listed technology company.
The partnership between OCBC Bank and ADDX aims to expand the range of investment products available to investors and tap into a larger investor base. By tokenizing the fixed coupon note, the product becomes accessible to a broader group of accredited investors.
ADDX, headquartered in Singapore, is dedicated to democratizing private markets by utilizing blockchain and smart contract technology. This digital approach streamlines the issuance, custody, and distribution processes of private market products, leading to increased efficiency and scalability.
ADDX has an impressive track record, having listed over 70 deals on its platform and collaborated with reputable entities such as Hamilton Lane, Partners Group, Investcorp, Singtel, and CGS-CIMB, among others. The asset classes available on ADDX include private equity, hedge funds, venture capital, private credit, real estate, debt, and structured products.
Kenneth Lai, OCBC Bank's Head of Global Treasury, emphasizes the importance of innovation and finding new channels for their products. OCBC Bank is delighted to be the first Singapore bank to offer an equity-linked structured note in tokenized form on ADDX. This collaboration marks the beginning of a long-term partnership that aims to offer diverse and appealing investment opportunities to ADDX's global accredited investor base.
ADDX CEO Oi-Yee Choo emphasizes the benefits of structured products, which provide unique risk and return characteristics not typically available through traditional investments. These products offer attractive options for investors seeking yield-generating opportunities in the current economic climate. Structured products can provide higher returns compared to bonds or fixed deposits, combining fixed-income components with exposure to underlying assets like stocks or commodities.
The partnership between OCBC Bank and ADDX leverages the expertise of both parties. By combining ADDX's proficiency in alternative investments and OCBC Bank's wealth management capabilities, investors can access a wide range of investment opportunities. The collaboration aims to introduce more structured products, with plans to explore the issuance of commercial papers in the future.
OCBC Bank established in 1932, OCBC Bank is the second largest financial services group in Southeast Asia and one of the world's highest-rated banks. With a strong reputation for financial strength and stability, OCBC Bank offers a comprehensive range of commercial banking, specialist financial, and wealth management services. The bank operates in key markets such as Singapore, Malaysia, Indonesia, and Greater China, with a wide network of branches and offices globally. OCBC Bank's subsidiaries, including Bank of Singapore and Lion Global Investors, provide private banking and asset management services, respectively.
ADDX is a full-service capital market platform that aims to democratize private markets. Since its inception in 2017, ADDX has secured substantial funding, including investments from renowned organizations such as Singapore Exchange (SGX), the Stock Exchange of Thailand, and Temasek subsidiary Heliconia Capital. ADDX holds recognition from the Monetary Authority of Singapore (MAS) as a recognized market operator (RMO) and possesses a capital markets services (CMS) license to deal in securities and provide custodial services. The platform serves individual accredited investors across Asia Pacific, Europe, and the Americas, as well as wealth managers and corporate investors through its institutional service, ADDX Advantage.
