Alta Acquires Private Securities Platform Hg Exchange from Binance

Southeast Asian alternatives marketplace Alta has acquired Singapore-based private digital securities exchange Hg Exchange (HGX) according to a company release. Although the Singapore-based alternative-assets marketplace did not disclose the acquisition’s financial terms, the deal will see HGX become a wholly-owned subsidiary of Alta.

According to a statement from Alta, the acquisition will allow the company to support the tokenization and digital custody of alternative assets, resulting in the creation of an end-to-end solution that will make trading private securities, funds, and asset-backed securities like real estate and luxury assets more affordable and faster.

“Today, by standardizing processes around our tokenized listings, we make investing in alternative cost-effective and transparent for investors,” Kelvin Lee, CEO, and co-founder of Alta said in the release.

Alta CEO explained that the acquisition of Hg Exchange marks a new chapter in the firm’s journey to revolutionize private markets with a blockchain-powered digital exchange, bringing enhanced access and liquidity to alternative investments for all investors.

Alta, previously known as Fundnel, will also list Phillip Securities, Nomura Holdings, Integra Partners, and Prime Partners as shareholders.

The acquisition follows Alta’s recent rebranding from Fundnel and aligns with the company’s goal and objective of “alternative assets for all” by building a marketplace that makes alternative asset investments accessible to everyone.

The latest deal will now offer a boost to Alta’s service offering by consolidating three core parts of its business which are private market investment, trading of tokenized asset-backed securities, and direct access to funds managed by Alta.

Since 2016, Alta has completed over 1,000 transactions valued in excess of $600 million, the firm claims.

HGX was founded in 2019 by an alliance of financial intermediaries, including Alta and PhillipCapital and now offers a wide range of digital and non-digital capital market solutions ranging from private equity and real estate to more exotic assets such as whiskey-backed securities.

The private exchange’s innovative digital infrastructure is powered by advanced blockchain technology and uses proven exchange solutions. The Monetary Authority of Singapore also regulates HGX. The exchange and Binance Asia Services announced a partnership in December 2021 that saw Binance take an 18% stake in HGX, which subsequently sent the price of BNB  on an upward trajectory the following week.