In Brief:
- Binance Asia Services invests in HG Exchange acquiring an 18% post-money stake.
- The acquisition aims to improve the products and services offered by blockchain technology.
- The investment gives Binance access to a licensed market operator along with tokenized assets like rare whiskey.
The blockchain ecosystem and crypto provider behind Binance Singapore, Binance Asia Services, announced it has invested in HG Exchange acquiring an 18% post-money stake.
The company’s worth after the outside investment is termed a post-money valuation. Binance stated that the HGX acquisition is subject to regulatory authorization.
Binance hopes to collaborate with HGX to improve the products and services offered by blockchain technology as a result of this investment, according to Richard Teng, CEO of Binance Singapore.
Teng, who was the chairman of HGX before becoming the head of Binance Asia., said the company continues to work closely with important government authorities to assist the expansion of the blockchain ecosystem.
The investment news came in as there were reports that Binance might withdraw its license application in Singapore and consider other alternatives for its global headquarters. This report comes in while its license application is still under review by the Monetary Authority of Singapore (MAS).
Binance’s regulatory challenges may be eased by the acquisition, as HGX was recently issued a recognized market operator license by the Monetary Authority of Singapore.
Binance’s investment in HGX provides the cryptocurrency exchange with access to a licensed market operator along with tokenized assets such as rare whiskey.
Teng stated, “We aim to work collaboratively with HGX to enhance the blockchain ecosystem in Singapore.”
Binance Asia Services continues to foster collaboration with local partners, government agencies, and experts in order to promote the global blockchain ecosystem’s long-term sustainability.
“In Singapore, we continue to work closely with key government agencies to support the growth of the blockchain ecosystem and development of requisite local talent needed,” Teng added.
