Alternative assets marketplace Alta acquires Hg Exchange

Quick Take

  • Alta has acquired the digital securities exchange Hg Exchange.
  • Hg Exchange will now rebrand to Alta Exchange.
  • It will continue to be led by CEO Willie Chang.

Alta, a Singapore-based alternative-assets marketplace formerly known as Fundnel, has acquired the digital securities exchange Hg Exchange, according to a company release. The financial terms of the acquisition were not disclosed.

The deal means that Hg Exchange will now become a wholly-owned subsidiary of Alta, and Phillip Securities, Nomura Holdings, Integra Partners and Prime Partners will become shareholders in Alta.

The acquisition will enable Alta to support the tokenization and digital custody of alternative assets. "Today, by standardizing processes around our tokenized listings, we make investing in alternative cost-effective and transparent for investors," said Kelvin Lee, CEO and co-founder of Alta, in the release.

A number of other investment firms are exploring the tokenization of alternative assets. Investment manager Hamilton Lane, which has $832.5 billion in assets under management, recently tokenized three funds in partnership with Securitize, while private equity giant KKR has also been exploring tokenizing funds on the Avalanche blockchain. 

Alta recently rebranded from Fundnel to demonstrate the firm's vision of "alternative assets for all." Since 2016, Alta has completed over 1,000 transactions valued in excess of $600 million, the company claims.

Hg Exchange is a private exchange that was formed in 2019 by an alliance of financial intermediaries, including Alta and PhillipCapital, and is regulated by the Monetary Authority of Singapore. Last year, the Singapore entity of Binance, Binance Asia Services, took an 18% stake in Hg Exchange.

Hg Exchange will now be rebranded to Alta Exchange following the acquisition and will continue to be led by its current CEO, Willie Chang.

“With the new brand launch and acquisition of Hg Exchange, Alta is affirming its leadership in private markets and continues to pave the way for broader acceptance of tokenized, asset-backed securities," said Hajime Ikeda, head of digital company at Nomura Holdings, in the release.

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