SDAX Financial raises S$24m in Series B round led by Straits Trading and PSA

DIGITAL securities exchange SDAX Financial has raised S$24 million in the first close of its ongoing Series B round, led by PSA International and Straits Trading.

New Horizon Global an investment company owned by Celine Tang also participated in the funding round. (see amendment note)

Straits Trading's investment ties in with its shareholder club initiative, which was working to allow shareholders to have fractional ownership of real estate and property. Through the investment, SDAX Financial would be able to gain access to real estate deals for fractional ownership.

The main asset Straits Trading will tag to the real estate token is a 64-storey high-rise residential development project in the Central Business District of Melbourne, Australia. The decision to list the property on SDAX Financial's exchange is part of Straits Trading's 5.0 transformation road map, and will seek to tap digital platforms to expand income streams and facilitate access to investment products for a wider group of investors.

Straits Trading had 2 listings for its Aspire Real Estate Investment Product on SDAX Financial, with a minimum investment amount of S$5,000 for Tranche B and S$2,000 for Tranche C. The interest rate is 6 per cent with all tokens fully taken up. 

PSA's investment into SDAX Financial is part of its commitment to environment, social and governance (ESG) solutions in its efforts to decarbonise supply chains.

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"Through collaborating with SDAX Financial's integrated digital financial services platform, we believe we can further PSA's sustainability initiatives for supply chain partners and cargo owners, and make a positive impact towards the decarbonisation of global supply chains, underpinned by clear market mechanisms," said Tan Chong Meng, group chief executive officer of PSA International.

"PSA will leverage SDAX Financial’s integrated digital financial services platform for efficient capital raising for green projects, to enable these projects to scale up and drive positive impact on global decarbonisation efforts. Such projects may arise through PSA’s cargo solutions for its partners and customers, including cargo owners,” added a PSA spokesperson.

The funds will be used to roll out new product offerings and further develop the technology platform to better serve users. SDAX Financial launched its digital asset exchange on Dec 6, and has listed a real estate security token.

"The ability to access a large pool of ESG and real estate assets allows the group to develop new innovative products to capture the fast-growing digital security token economy," said Tan Chong Huat, chairman of SDAX Financial.

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Amendment note: An earlier version of this article stated that ARA Asset Management and New Horizon Capital participated in the round, instead it was only New Horizon Global.