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What is the VCC structure and why you should know about it?

2025.01.09 10:49


About TOKENIZATION SOLUTIONS TOKENIZATION CONSULTING TOKENIZATION SAAS PLATFORM LIQUIDITY POOLS deals EDUCATION Partners CONTACT Log In Sign Up About TOKENIZATION SOLUTIONS TOKENIZATION CONSULTING TOKENIZATION SAAS PLATFORM LIQUIDITY POOLS deals Education Partners CONTACT Log In Sign Up TOKENIZATION SOLUTIONS TOKENIZATION CONSULTING TOKENIZATION SAAS PLATFORM LIQUIDITY POOLS Get The Latest News, Updates And Our Tokenization Report Of The Vcc With Ubs, State Street And Pwc Thank you! Your form has been successfully submitted, and you can now download the eVCC file Download now Oops! Something went wrong while submitting the form. By clicking ' Submit '. I confirm that I have read and agree to the Privacy Policy , Terms of Use , and to receive emails and updates. Close All Blog Press Research IBF COURSE Webinar Podcast Video Product Guide RWA Ecosystem Get The Latest News, Updates And Our Tokenization Report Of The Vcc With Ubs, State Street And Pwc Thank you! Your form has been successfully submitted, and you can now download the eVCC file Download now Oops! Something went wrong while submitting the form. By clicking ' Submit '. I confirm that I have read and agree to the Privacy Policy , Terms of Use , and to receive emails and updates. Close 4 min read What is the VCC structure and why you should know about it? Julian Kwan CEO and Co-founder InvestaX and IX Swap. Host of the Infinity and Beyond Podcast.

VCC structure was introduced by the Monetary Authority of Singapore (MAS) and the Accounting and Corporate Regulatory Authority (ACRA) in January 2020 to encourage more investment funds to be domiciled in Singapore. The VCC is a new corporate entity structure under which multiple funds or collective investment schemes (whether open-end or closed-end) may be gathered under the umbrella of a single corporate entity and yet remain ring-fenced from each other. For this structure to meet the future needs of investment managers, investors, and service providers and compete sustainably with similar legal structures in other popular fund jurisdictions such as Cayman and BVI, it needs to enable tokenization capability to offer more operational benefits to the VCC fund’s stakeholders. Tokenization of fund interests not only allows fund managers to access a new distribution channel powered by distributed ledger technology (DLT) that offers tradability of private market assets but also offers increased efficiencies and cost savings for lifecycle management of parent fund and sub-funds. InvestaX  collaborated with UBS, StateStreet, CMS, PWC and the Tezos Foundation in Singapore to launch the first e-VCC. The objective of the e-VCC Project was to determine the benefits and challenges for fund managers in using an e-VCC structure as well as offer potential solutions to the identified challenges. Some of the key findings of the e-VCC project are:

Blockchain-native fund share (token) can bring efficiencies and benefits to the fund management industry, such as reduction of intermediaries and fixed costs, removal of redundant processes, increased transparency, and faster settlement Tokenization of a VCC is applicable at both umbrella VCC level and sub-fund VCC levels The newly established VCC legislation is structured in a way that could enable blockchain-native token issuance and facilitate secondary market trading of these on digital securities exchanges such as InvestaX Some of the functions of fund administrators and corporate secretaries could be digitalized and streamlined under the adoption of e-VCC. That said, both stakeholders are playing key roles in managing the daily operations of the e-VCCs

To help our industry partners and interested parties further understand the potential benefits of adopting e-VCC as their fund issuance structure, InvestaX , and our e-VCC project working group hosted a webinar to share what we discovered from our POC journey, and points of consideration when the adopter is setting up their own e-VCC fund. Tokenization of a VCC can be done at both an umbrella VCC Level and sub-fund VCC Level. Learn how to tokenize your VCC at  investax.io . Reach out to us at [email protected] to schedule a consultation call.

Read more: InvestaX Announces The Completion of PoC Tokenisation of Singapore Variable Capital Companies (VCC)

About InvestaX

InvestaX is a Monetary Authority of Singapore (MAS) licensed digital securities platform based in Singapore offering end-to-end solutions for the issuance, trading, and custody of digital securities for real estate, private equity, and other alternative investments. Founded in 2015, InvestaX is an early pioneer in the use of blockchain technologies to develop leading technology-driven investment vehicles called digital securities offerings, removing friction and delivering secondary market trading. To date, the company has listed more than 28 private equity offerings that are jointly valued over US$1 billion and had 16 successful exits.

At InvestaX, we offer the leading Singapore Licensed Tokenization Software-as-a-service (SaaS) platform for Real World Asset Tokens (RWA) and Security Token Offerings (STO). We provide a one stop shop for tokenized assets for global investors, including real estate, private equity, venture, ESG, startup, private credit/debt and more. We also provide IX Swap, the first legal and compliant Automated Market Maker (AMM) for RWA and STO.

If you are interested to learn more about how you can build your business on top of our infrastructure and what we can offer you as your tokenization partner, then contact us here . Thank you.

SIMILAR Press January 16, 2022 Investax In 120 Seconds 4 min read Product Guide May 15, 2024 Security Token Lifecycle Demo On InvestaX and IX Swap Tokenization Platforms Blog July 3, 2024 The Tokenization Market in Q2 2024: Laying Foundations for Scale Deployment 6 min read Stay Updated For all the latest digital asset industry news, updates, products and opportunities Thank you! Your submission has been received! Oops! Something went wrong while submitting the form. Real-world asset (RWA) tokens are digital representations of real-world assets like equity or debt in real estate and private equity. Utilizing blockchain and smart contracts, they revolutionize investments by enhancing transparency, security, and efficiency. This innovation simplifies financial transactions and expands the range of financial instruments and structures. InvestaX is a member of the Singapore Fintech Association (SFA) Explore IBF Course Deals Tokenization e-VCC Legal Disclosures Privacy Policy Terms of Use General About Us Careers Partnerships Support FAQ Contact Us Important Notice: “InvestaX.io is operated by IC SG Pte. Ltd. ( “InvestaX” or “IC SG” ), a Singapore private limited company (Company Registration No. 201300459N). IC SG holds a Capital Markets Services license No. CMS100635 ( “CMSL” ) to deal in securities by the Monetary Authority of Singapore (the “ Authority ), which allows IC SG to facilitate the primary offer and issuance of securities and act as an intermediary between issuers and investors. In addition, IC SG is licensed by the Authority as a recognised market operator to operate an organised market in respect of securities and units in collective investment schemes, the property of which consists only of capital markets products. (the “ Organized Market ”).The Organized Market allows investors to purchase securities from, and sell securities to other investors. IC SG also holds a regulatory exemption under the Financial Advisers Act (Cap. 110) which allows it to provide advice on units in collective investment schemes (broadly, pooled investments, and is exempted by the Authority from complying with section 7(1) of the SFA in respect of operating an organised market for collective investment schemes, the property of which consists solely of non-capital markets products (the “ Exempted Market ”).

By visiting this site, you agree to be bound by InvestaX’s Terms of Use and Privacy Policy. InvestaX.io is intended for institutional investors, accredited investors and otherwise qualified investors who understand and accept the risks associated with private investments. Investments are not bank deposits and are not guaranteed. InvestaX does not give investment advice, nor does it make any recommendations regarding the appropriateness of any particular opportunities for any investor offered on its site. No correspondence or information provided on InvestaX.io or by any representative of InvestaX should be construed as a recommendation of any security, or agreement to apply for or buy any securities, to effect or conclude any transaction of any kind whatsoever in any jurisdiction to any person to whom it is unlawful to make such an offer. Each investor is advised to conduct his/her own due diligence as InvestaX does not provide any investment, business, tax or legal advice. Please read InvestaX’s Terms of Use for more detailed terms and conditions in which users of InvestaX are subject to.