Singapore-based Cyberdyne Tech Exchange (CTX) aims to focus on trading of green assets and be the first exchange to incorporate carbon disclosures for both issuers and investors.
The latest addition to Singapore’s digital exchange landscape plans to list and trade tokens backed by green infrastructure, real estate, equity, art, Bitcoin and Ethereum.
CTX plans to launch in the second half of 2021 after receiving licences from the Monetary Authority of Singapore (MAS) this month to deal in capital market products and provide custodial services. CTX has also been granted approval-in-principle for a Recognized Market Operator licence, as well an exempt Payment Service Act licence.
Founded in 2018, CTX says it sees potential in the issuing and trading of tokens of green assets such as solar or wind farms, smart and sustainable buildings, green industrial parks, sustainable agriculture and zero emission mobility.
The digital exchange aims to be the first to require carbon emission disclosures for all assets traded on its system, allowing both issuers and investors to track the carbon footprint of the assets in their possession.
Dr Bai Bo, CTX executive chairman and co-founder, says: “We believe security tokens will be the new equity and will drive the next wave of the digital economy. CTX will seamlessly connect mainstream financial institutions and accredited investors to innovative green assets on a robust exchange that will operate within the rigorous and progressive regulatory framework that Singapore offers.”
Bai, who is also chairman of Asia Green Fund (AGF), one of Asia’s first impact private equity funds with over US$2 billion assets under management, expects demand for green assets to surge in the coming years as countries pursue initiatives to meet their carbon neutrality commitments.
In recent months Singapore has seen the launch of digital exchanges from the Temasek-backed iStox and the largest lender in the city state DBS, whose digital exchange enables institutional investors and accredited investors to tap into a fully integrated tokenization, trading and custody ecosystem for digital assets.
Tokenizing an asset using blockchain technology and smart contracts creates a security token that represents a share or ownership of a piece of the underlying asset, which is often of high value or is illiquid.
The process makes the asset accessible to many more investors and allows issuers to raise funds in a cheaper, faster and easier manner compared to a conventional IPO or bond offering.