Singapore-based digital financial services solutions provider SDAX Financial has raised US$24 million in its ongoing Series B funding round, the company announced.
The funding round was led by port and cargo service provider PSA International and SGX-listed The Straits Trading Company. New Horizon Global also participated in the funding round.
SDAX Financial, which was formed with the merger of digital assets exchange SDAX and digital investment platform Minterest earlier in the year, is raising funds to bolster its real estate investment offerings. The fresh capital will also support efforts to allow investors to access more ESG and real estate assets.
“We are delighted to welcome PSA and Straits Trading as key partners into our digital financial services ecosystem. They are leaders in their respective fields and their collective expertise strengthens the group’s twin-engine focus of environmental, social, and governance (ESG) solutions and real estate to deliver a compelling value proposition for our ecosystem stakeholders and investors,” says SDAX Financial chairman Tan Chong Huat.
PSA International Group chief executive officer Tan Chong Meng believes the partnership with SDAX Financial will help further PSA’s sustainability initiatives, especially for supply chain partners and cargo owners. Tan says PSA International hopes to make a positive impact towards the decarbonization of global supply chains, “underpinned by clear market mechanisms”.
SDAX Financial says PSA International’s investment reflects its commitment to co-create and invest in ESG solutions for ports, supply chains and climate-conscious cargo owners.
With the fresh funds, SDAX Financial says it is now well positioned “to reshape the capital markets to become the gateway to diverse digital assets and investments”.
The funding will also allow SDAX Financial to develop new innovative products to capture the fast-growing digital security token economy, SDAX Financial's Tan says. Earlier this month, SDAX Financial listed its first real estate security token on its own digital asset exchange for secondary trading.
The participation of Straits Trading, an investment firm with a real-estate-heavy portfolio, further strengthens the real estate origination capabilities of SDAX Financial.
SDAX Financial says it believes real estate is a prime asset class for tokenization, owing to its familiarity among investors and its illiquid nature.
“The ability to harness a large pool of real estate assets enables the group to facilitate fractional ownership without liquidation of the real estate asset and through the lowering of entry barriers for investors, real estate investments will be even more attractive to a broader spectrum of participants,” SDAX Financial says.