SG’s InvestaX Completes Tokenization Project

By Shiela Bertillo

InvestaX, Asia’s pioneer Digital Securities Offerings platform, announced today the outcome of Singapore VCC structure (Project e-VCC). The project involved examining the technological, legal, and practical feasibility of tokenizing the Singapore Variable Capital Company using a blockchain native structure. 

This global first initiative allowed industry participants to determine the lifecycle and workflow processes for efficiencies gained using an e-VCC by the relevant stakeholders, and the key considerations for potential tradability of such e-VCC securities on exchanges like InvestaX. 

In September 2020, InvestaX was awarded the PoC grant, which provides funding support for experimentation, development and dissemination of developing innovative technologies in the financial services sector.

Julian Low, Director of Business Development, South East Asia at TZ APAC, an Asia-based public blockchain consultancy, expressed their gratitude for being a part of the initiative.

“Singapore has always been at the forefront of fintech innovation, and with this project, it continues to strengthen its position as a leader in global asset management. We are grateful to be a part of this POC project, as it serves as a testament to the revolutionary potential of distributed ledger technologies (DLT). Now more than ever, enterprises, corporate brands, and governments want to know how to leverage the transformational power of blockchain. Through our 360 degree support system, we want to create meaningful partnerships in the Asia Pacific region and champion digital disruption.” he stated.

On the other hand, STACS Managing Director Benjamin Soh, said: “As a leading fintech firm in Singapore, STACS plays a key role in unlocking value for the financial industry via our live industry-wide DLT platform for Asset and Wealth Management, End-to-End Digital Securities, and Enhanced ESG Finance. This is a meaningful project and STACS is thrilled to be a technology partner of InvestaX and various partners in the VCC industry, to contribute our DLT solution expertise in ensuring the project’s practicality, scalability, and interoperability.”

Consequently, Project e-VCC also led to the conclusion that there is nothing explicit in Singapore’s existing laws prohibiting issuance of blockchain-native securities. However, the potential application of stamp duty was identified as a hurdle and should be addressed in order to enable secondary trading of e-VCC shares.

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