Alta buys private securities platform Hg Exchange from Binance, others

ALTA, previously known as Fundnel, has fully acquired Singapore-based private digital securities exchange Hg Exchange (HGX) for an undisclosed sum as it looks to expand its business lines and grow regionally. The deal comes on the back of rising interest in alternative assets and more avenues for liquidity.

Alta’s digital marketplace gives investors access to investments such as shares of early to late-stage private companies, and private equity and venture capital funds.

The company said the acquisition of HGX will allow it to support tokenisation and digital custody of alternative assets. Alta is building an end-to-end solution that makes it cheaper and faster to trade private securities, funds and asset-backed securities such as real estate and luxury assets.

HGX was founded in 2019 by Phillip Securities, PrimePartners, Zilliqa and Alta, who were also its major shareholders. It has a Recognised Market Operator licence from the Monetary Authority of Singapore.

Binance, through its Singapore arm Binance Asia Services, acquired an 18 per cent stake in HGX in December 2021. The world’s largest cryptocurrency exchange said it would work with HGX to enhance offerings of products and services supported by blockchain technology.

Following the acquisition by Alta, HGX will be renamed Alta Exchange. Phillip Securities and Prime Partners have become shareholders of Alta after a share-swap.

Alta said it has facilitated more than 600 transactions worth over US$600 million, involving the shares of companies including SpaceX, Grab and Gojek, and alternative investments such as rare whiskys.

“Alta is also working closely with more regulators across South-east Asia to allow investors to tokenise their shares, allowing them to list and trade them on Alta Exchange,” said Kelvin Lee, CEO and co-founder of Alta, which is backed by Nomura Holdings and Integra Partners.

“Alta sees asset tokenisation as an important development in revolutionising alternative asset investments, making it more accessible and bringing fresh liquidity to private markets,” Lee added.

HGX will continue to be led by CEO Willie Chang. In August, it appointed former Singapore Exchange executive Lawrence Wong as chairman. Wong was head of listing, then head of China at SGX, promoting the bourse as a preferred venue for fundraising.