The Singapore platform ADDX is ready to offer clients, along with traditional assets, deposits in bitcoins, ethers and USDC – but at a big discount.
ADDX stated, which will recognize holders of BTC, ETH and USDC stablecoins as accredited investors. At the same time, the company claims that it will take appropriate risk management measures:
“ADDX will only consider high market cap cryptocurrencies and apply a discount rate when valuing assets.”
To implement the security policy, the platform is going to use a discount rate of 50% for BTC, ETH and 10% for USDC to calculate the value when they are included in a portfolio with traditional assets. Thus, ADDX becomes the first financial institution in Singapore to offer clients the status of an accredited investor based on cryptocurrency assets.
ADDX CEO Oi-Yee Choo believes cryptocurrencies are here to stay:
“They no longer exist only on the fringes of wealth and investment conversations. It is reasonable to recognize that digital assets placed in an investment portfolio are not much different from any other assets that add value to the market, such as real estate or stocks.”
Singapore does not recognize cryptocurrencies as income or financial assets, but considers them to be personal property. Given the price volatility, ADDX is going to implement risk management measures when using cryptocurrencies in order to convince regulators that assets are safe for investors.
ADDX recognizes as accredited investors cryptocurrency holders with more than S$2 million ($1.5 million) in balance and a minimum income of S$300,000 (over $217,000) in the last 12 months and S$2 million ($1.5 million) in net financial assets.
At the beginning of the month, Deputy Prime Minister of Singapore Heng Swee Keat warned retail investors against investing in cryptocurrencies, recalling that there are other digital assets besides them.
Source: Bits
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