Binance Asia Services takes 18 percent stake in Hg Exchange

Published On: December 8, 2021Categories: Latest News1.3 min read

Binance Singapore will work with Hg Exchange in enhancing offerings of products and services supported by blockchain technology, following its strategic investment in the platform

Binance Asia Services, which operates Binance’s Singapore entity, has taken an 18 percent stake in Hg Exchange (HGX), a Singapore-based private securities exchange.

Binance Singapore will work with Hg Exchange in enhancing offerings of products and services supported by blockchain technology, following its strategic investment in the platform, according to an announcement on Wednesday.

Hg Exchange, founded by PhillipCapital, PrimePartners and powered by Zilliqa’s blockchain, aims to facilitate cross-border issuance and trading of securities.

The embattled crypto exchange will acquire the post-money stake, which includes its own investment, via its Singapore arm, Binance Asia Services. This move comes after Binance has mulled leaving the island republic over its regulatory licence limbo.

The acquisition could help with Binance’s regulatory hurdles, as Hg Exchange was recently granted a recognised market operator licence from the Monetary Authority of Singapore (MAS).

Hg Exchange announced its first trades in September 2020. As of mid-2021, the exchange has listed 13 different products, with a total average monthly trading volume exceeding $500,000 in the first half of the year. In addition to shares in private companies, Hg Exchange is working to list alternative assets including wines, art and real estate.

Crypto and traditional financial offerings continue to converge. Through this investment, we seek to work with Hg Exchange in enhancing offerings of products and services supported by blockchain technology, said Richard Teng, chief executive, Binance Singapore. Teng was the chairman at Hg Exchange before he took over as chief at Binance Singapore in August 2021.

This acquisition is still subject to regulatory requirements.

About the Author: Jonathan Adams

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