InvestaX today announced the results of the e-VCC Project, which involves examining the technological, legal and practical feasibility of tokenizing the Singapore Variable Capital Company using a blockchain native structure.
Through this proof-of-concept, industry participants can define life cycles and workflow processes for the efficiencies gained by using e-VCC by relevant stakeholders (i.e. fund managers, fund managers, and investors), and key considerations for potential tradability of e-securities exchanges such as InvestaX.
The project is also the first global Initiative led by InvestaX, UBS, State Street, and CMS to jointly explore the tokenization potential of Singapore’s VCC structure (Project e-VCC). In this project PwC Singapore provides regulatory support and tax consultancy for the e-VCC Project.
Then the distribution of VCC funds will be issued directly on the public blockchain or private blockchain. With two different blockchains the project could compare the benefits of a native blockchain security token design (“one tier”) as opposed to a token security design (“two tier”).
“We are delighted to have collaborated with UBS, State Street, CMS Holborn Asia, PwC Singapore as well as our blockchain partners Tezos and STACS on this innovative initiative to bring efficiencies to the fund investment and management industry,” said InvestaX CEO Julian Kwan.
InvestaX is a leading digital securities investment and trading platform licensed by the Monetary Authority of Singapore (MAS) to offer an end to end solution for the issuance, trading and storage of digital securities for real estate, private equity and other alternative investments.
Meanwhile, UBS is the largest Swiss banking institution and the largest private bank in the world. Then State Staree is ranked 15th in the list of the largest banks in the United States by assets. It is one of the largest asset management companies in the world with US$3.1 trillion under management and US$38.8 trillion under supervision and administration. By 2022, both companies have more than 110,990 employees worldwide.
Tezos Foundation Provides Support
Tezos Foundation and Hashstacs Pte Ltd (STACS) provide support as providers of public and private blockchain protocols, respectively, for PoC.
“We are grateful to be a part of this POC project, as it serves as a testament to the revolutionary potential of distributed ledger technology (DLT). Now more than ever, companies, corporate brands and governments want to know how to harness the transformational power of blockchain,” said Julian Low, Director of Business Development, Southeast Asia at TZ APAC.
Through a 360-degree support system, Tezos hopes to create meaningful partnerships in the Asia Pacific region and champion digital disruption.
InvestaX was awarded a PoC grant in September 2022, which provides funding support for the experimentation, development and deployment of nascent innovative technologies in the financial services sector. The PoC grant is part of the Financial Sector Technology and Innovation (FSTI) scheme under the Financial Sector Development Fund managed by the Monetary Authority of Singapore (MAS).
The e-VCC project also led to the conclusion that there is nothing explicit in Singapore’s law prohibiting the issuance of blockchain native securities. Such securities will come under the scope of digital tokens which are capital market products and are regulated under the Securities and Futures Act. However, the potential application of stamp duty was identified as an obstacle that must be overcome to enable secondary trading of e-VCC shares.