Squeeze out a quick 15-minutes lunch post.

One Small Step

Singapore has been a breath of fresh air when it comes to welcoming, adapting and embracing blockchain technology. We now have tradeable private equity on the Ethereum blockchain!

I was pleasantly surprised to see news today that the first ever private listing has taken place on 1exchange (1X), the only regulated private securities exchange with a Recognised Market Operator licence granted by the Monetary Authority of Singapore.

The listed entity is none other than Singapore-based boutique fund management company Aggregate Asset Management (“AAM”), which has listed on 1X with over SGD 5.6million worth of tradeable private equities representing approximately 5% of the company’s share equity.

If the name sounds familiar, that’s because Teh Hooi Ling was previously with the firm before leaving to start her own Inclusif Value Fund.

The cool thing is, 1X was built on the public Ethereum mainnet and the ERC-20 tokens minted by Aggregate Asset Management can actually be viewed here on Etherscan. Named ‘Aggregate Asset Management Unit Trust’, you can see that a total of 24,731 tokens were minted yesterday and subsequently distributed to a total of 51 holders.

I haven’t dug deeper into the regulations part of this, but I understand that it is only available to accredited investors (meh). There is nothing stopping the transfer of these ERC-20 tokens (because public, permissionless blockchain) but of course, the main issue one would be concerned with is the redemption of it for cash or fiat as the crypto community prefers to call it. And yes, what the future holds is incredibly promising. At the moment, the 1X website has listed another two more upcoming potential listings.

Bubbles

I felt that the stock market is starting to feel increasingly bubbly lately, and the yield chasing is ridiculous especially when I look at REITs such as CMT, FCT and MCT. Yield compressing below 4.5% is definitely key sign for me, and I have started to de-risk a little bit by letting go of some industrial REITs because those are going to get the worst of it if a recession/market crash hits.


(Get your own portfolio chart – Check out Stocks Cafe)

The plan for my dividend income portfolio is to hold on to my (presumably) defensive REITs/counters and stay invested regardless of the external environment. My cost yield is what matters.

Meanwhile, my cash funds would have to start looking for a nice and cosy place to sit tight.