ADDX, a Singapore-based private equities platform, has become the first financial institution in the city-state to recognize crypto holdings while verifying investors looking to use its platform, according to a press release.

The firm’s decision to include crypto wealth while assessing accredited investors comes amid the growing adoption of digital assets among financial services companies. According to the report, ADDX will only recognize cryptos with a high market value. ADDX will initially accept three tokens, Bitcoin (BTC), Ethereum (ETH), and USD Coin (USDC).

Explaining why ADDX has decided to start onboarding accredited investors based on their crypto wealth, the company’s CEO, Oi-Yee Choo, said:

Cryptocurrencies are here to stay. They no longer exist only on the fringes of wealth and investment conversations.

He added that a vast minority of investors own crypto. Choo believes it is vital to recognize digital assets as part of an investor’s portfolio.

The Monetary Authority of Singapore (MAS) requires an investor to have a minimum income of $217,991.57 over the past 12 months to qualify as an accredited investor. Additionally, the investor must have $730,000 in net financial assets and $1.46 million in net personal assets.

ADDX will help more people acquire the accredited investor status by recognizing cryptos. In turn, they will be able to participate in private market investments like private equity and venture capital funds, hedge funds, and pre-initial public offerings.

Per the report, ADDX will introduce risk management measures that consider the price volatility of cryptos. For instance, the firm will only recognize high-value crypto within the net personal assets category. The company will also apply a 50% discount when calculating the value of Bitcoin (BTC) and Ethereum (ETH) and a 10% discount for USD Coin (USDC).

Singapore continues approaching crypto with caution. The city-state is keen on regulating the burgeoning asset class despite its ambitions to become Asia’s crypto and blockchain capital. In April, the Singaporean parliament passed an omnibus bill to grant MAS more power and introduce stricter rules for crypto companies.

The post ADDX starts recognizing crypto while onboarding accredited investors appeared first on CryptoSlate.

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