SINGAPORE – Tokenize Xchange aims to quintuple its Singapore headcount after the firm raised an additional US$11.5 million (S$15.4 million).
The Singapore-headquartered cryptocurrency exchange told The Straits Times that it is on track to expanding its Singapore team from 20 to 100 staff in the next 18 months.
About a quarter of the new hires will focus on enhancing compliance and operations, the exchange said, adding that the move reflects its commitment to regulatory adherence as global regulators move to tighten rules for the sector.
The exchange said it secured the US$11.5 million in its Series A, Phase 2 funding from local venture capitalist firm Trive and other high-net-worth individuals.
Series A financing refers to the first round of venture money a firm raises after seed and angel investors.
This investment brings the total Series A fund-raising amount to US$23 million, more than half of the exchange’s goal of US$33 million by year-end.
Trive, which invests in high growth, technology start-ups, previously led the first phase of the exchange’s Series A funding with an investment of US$11.5 million in 2022.
The exchange said its expansion will help it adapt to complex regulatory frameworks across South-east Asia.
The company has applied for a digital payment token licence in Singapore and is currently operating under an exemption.
It was among the first three digital asset exchange operators to receive full approval from the Securities Commission Malaysia in April 2020, and is Malaysia’s second-largest digital asset exchange.
The fund raising comes at a time when the crypto market is bouncing back from mass sell-offs in 2022 and 2023, following the crash of prominent players such as US exchange FTX and hedge fund Three Arrows Capital.
Tokenize’s founder and chief executive Hong Qi Yu noted that the crypto bull market has started as the price of Bitcoin peaked last week, which gives the exchange an opportune moment to gradually expand the team.
Bitcoin topped US$71,000 for the first time a week ago, taking this year’s rally to almost 70 per cent on the back of massive inflows into US exchange-traded funds (ETFs).
The improving sentiments over the cryptocurrency is buoyed by the launch of Bitcoin ETFs in the United States in recent months, with investors pouring in billions and igniting a broad surge in crypto markets.
On March 11, the London Stock Exchange also confirmed it would accept applications for admitting Bitcoin and Ether exchange-traded notes.
Asked about plans in the pipeline, Mr Hong said the firm is planning to launch its proprietary mainnet. A mainnet is short for main network, which refers to the primary blockchain network where actual transactions occur, and the native cryptocurrency is used.
“Additionally, we are in the process of obtaining a digital payment token licence from a South-east Asian country, while awaiting the approval of our licence in Singapore. Moving forward, our strategy includes securing digital payment licences in Taiwan, Dubai and Abu Dhabi,” he added.
Founded in 2017, Tokenize has operations in key Asian markets including Singapore, Malaysia and Vietnam, serving both individual and institutional investors.
