Whisky-Backed Securities Trading Goes Live in Singapore

Hg Exchange went live this week with whisky-based asset-backed securities trading, becoming Southeast Asia’s first bourse with the offering.

Five whisky-linked securities were actively traded through the blockchain-based bourse for the first time yesterday, according to a statement, with total volumes valued at 700,000 British pounds ($956,000).

Hg Exchange’s (HGX) is a private bourse that features not only whisky-linked securities but also other financial securities such as private equity, venture capital funds, and real estate.

Its founding partners include Asia-focused financial firms PhillipCapital and PrimePartners alongside private tech platform Fundnel and blockchain platform Zilliqa.

Demand from Asia in fine whiskeys has grown in recent years concurrently with persistent wealth accumulation. There was a most notable surge in the region during the mid-2010s after the release of the Japanese television series Massan, then a popular drama about a whisky distiller, sparking widespread demand.

The strongest returns yielded from HGX’s first trading day was from the Port Ellen which saw over 30 percent gains yesterday.

We are delighted by the positive reaction to this whisky-based asset-backed securities from accredited investors in Singapore, across Asia and around the world, said Gerald Ong, deputy chairman and executive director of PrimePartners Corporate Finance Holdings.