Image: Reuters Berita 24 English - ADDX, a Singapore-based private securities platform, has announced that it is the first financial instit...
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| Image: Reuters |
Berita 24 English - ADDX, a Singapore-based private securities platform, has announced that it is the first financial institution in the city-state to include cryptocurrencies in its assessment of high-net-worth clients' assets.
The move reflects financial services organizations' increased acceptance of digital currencies as they aim to reach a wider audience of investors.
ADDX, which has Singapore Exchange as a sponsor, said in a statement on Wednesday that it would only recognize cryptocurrencies with a higher market value and would value them using discount rates.
"Cryptocurrencies aren't going away anytime soon. They are no longer relegated to the periphery of wealth and investment discussions "Oi-Yee Choo, CEO of ADDX, commented
"With such a small number of investors holding crypto, it is reasonable for these digital assets to be recognized as a component of one's portfolio – just like any other marketable asset, such as real estate or equity," Choo added.
Individuals must have at least S$300,000 ($217,991.57) in annual income, S$1 million in net financial assets, or S$2 million in net personal assets to be considered accredited investors in Singapore.
ADDX stated that it will only accept crypto assets in the category of net personal assets, with a 50% discount rate for bitcoin or ether and a 10% reduction for USDC stable coin when determining the value of these holdings.
During the COVID-19 epidemic, cryptocurrency, which was long considered a niche asset for risk-averse investors, grew in popularity. Despite the fact that bitcoin's value has lately dropped, the crypto sector as a whole is still worth $1.2 trillion.
"We are likely to enable consumers to finance their investment wallets with cryptocurrencies in the future, as well as convert their assets between fiat currencies and crypto," Choo said.
(1 Singapore dollar = 1.3762 Singapore dollars)
