Zilliqa, the high-throughput public blockchain platform, has partnered with MaiCoin, a Taiwan-based one-stop digital asset exchange platform with trading and payment services to power Hg Exchange. Hg Exchange seeks to launch the first member-driven exchange in Southeast Asia for privately-held shares and Security Token Offerings.
Hg Exchange has signed a memorandum of intent with Phillip Securities, PrimePartners, RHT Capital and Fundnel, who thereafter will become the first four members of the exchange. The blockchain-powered exchange will deliver an integrated and one-stop solution for issuers, buyers and sellers of trading assets, and market makers.
It is envisaged that Hg Exchange will provide access to high-growth startups and also decacorns such as Uber, Airbnb, Space X, Grab and Didi Chuxing, which are currently not within reach of the average investor, and will be an unprecedented liquidity option for founders, employees, and shareholders to monetise their shares. Hg Exchange has applied for the Monetary Authority of Singapore (MAS) FinTech Regulatory Sandbox.
Xinshu Dong, CEO and Co-Founder of Zilliqa said, “Rather than blockchain for blockchain’s sake, it’s important to look at how blockchain technology can solve existing challenges holding industries back. Within the private investment industry, blockchain can provide greater standardisation, fractionalisation, and enables trading on a regulated venue at lower costs. Hg Exchange is a prime example of how Zilliqa is collaborating with leading industry partners to enable new and innovative use cases that disrupt and advance traditional sectors, adding value to users. As we launch our mainnet at the end of January, our aim is to continue to focus on real-world use cases to accelerate the mainstream adoption of blockchain, and move the industry towards meaningful growth.”
Powered by Zilliqa and MaiCoin, Hg Exchange will bring together cutting-edge technology and far-reaching solutions, with the blockchain layer enabling ease of trading and settlement, and the potential to verifiably secure stored assets. With its mainnet launch imminent, Zilliqa employs sharding as an on-chain solution to preserve decentralisation and enable scalability. Its proprietary smart contract language is amenable to formal verification, thus providing enhanced security for assets. Taiwan’s largest and longest running digital asset platform, MaiCoin will be responsible for building the exchange functions from the matching engine to the order book. Operating with an institutional focus, MaiCoin will bring its multi-factor authentication and transaction signing technologies to bear, as well as its well-honed wallet management processes.
Alex Liu, CEO of MaiCoin said, “The intersection of blockchain technology with traditional asset classes such as private equity promises to globalise and liquefy previously illiquid assets. The attendant liquidity premium that will be enjoyed by all market participants will be delivered only through a combination of innovative technology and prudent regulation. Having worked closely with financial institutions in Taiwan to serve the retail markets, we look forward to partnering with the world-class team of Zilliqa and leading financial intermediaries to serve the institutional market in Southeast Asia.”
Unlike existing platforms, Hg Exchange will be a member-driven exchange that unites buyers, sellers, issuers, brokers, and market makers, on one platform. This opens up access to all participants within the private capital markets, allowing for multi-lateral interactions and enabling large network effects to facilitate transactions. All financial intermediaries joining the exchange will separately need to be licensed by the Monetary Authority of Singapore to conduct their respective regulated activities. Industry-leading financial intermediaries, Phillip Securities, PrimePartners, RHT Capital and Fundnel, have signed a memorandum of intent with Hg Exchange and will thereafter become the first four members, post-launch.
Kelvin Lee, co-founder and CEO of Fundnel, said, “As the business landscape digitises, so will the demands of future generations of investors, necessitating a change in approach. The digital-first strategy adopted by Hg Exchange is envisioned to seamlessly connect private enterprises with the right investors, and also democratise the capital market by providing investors with a chance to participate alongside their institutional counterparts. As the first deal flow partner for Hg Exchange, we look forward to working closely with our partners to shape the continued growth of regional markets.”
The exchange has submitted its Fintech Regulatory Sandbox application to the Monetary Authority of Singapore. Hg Exchange welcomes all interested parties to register their interest to participate. For more information, please visit www.hg.exchange.