Anshuman Daaga

SINGAPORE (Reuters), ADDX, a Singaporean private securities platform, announced it was the first to accept cryptocurrency as part of its assessment of the assets of wealthy clients.

This move demonstrates the increasing acceptance of digital currency by financial service firms, as they try to reach a broad range of investors.

ADDX’s backers include Singapore Exchange.

“Cryptocurrencies have a long history. Oi-Ye Choo CEO at ADDX said that they no longer exist in the shadows of wealth and investments.

“With a large minority of investors owning crypto, it is reasonable for these digital assets to be recognised as a part of one’s portfolio – not unlike any other assets that can be valued in the marketplace, such as real estate or equity,” Choo said.

To be eligible as accredited investors, an individual must have at minimum S$300,000. ($217.991.57) in income for the last 12 months.

ADDX stated that it would accept cryptocurrency assets in the same category as net personal assets. It will use a discount rate of 50% for Bitcoin or ether to calculate the holdings’ value and a discount of 10% for USDC stable coins.

Cryptocurrencies were once considered a risky asset and became popular after the COVID-19 epidemic. While bitcoin is now worth less, its overall market value remains at $1.2 billion.

Choo stated that “In the future, we will likely enable customers to fund investment wallets using cryptocurrencies and convert assets between fiat currencies or crypto.”

($1 = 1.3762 Singapore dollars)