SINGAPORE, 27 December 2022 – PhillipCapital today announced that it has issued the company’s first Digital En Primeur Wine-Based Token, providing an attractive alternative investment opportunity to cater to the needs of modern-day investors.
The wine tokens, also known as ‘the En Primeur tokens’ (EP), will be traded on Alta’s exchange platform, a private securities exchange licensed by the Monetary Authority of Singapore. Each asset-backed securities (“ABS”) digital token is linked to a parcel of 36 bottles of 16 wine labels, representing the finest wines of the 2020 Bordeaux EP vintage such as Lafite Rothschild, Haut Brion, and Mouton Rothschild. Upon bottling in 2023, or at the maturity of the secured notes in 2026, investors can opt to redeem for payment from the sale of wines or physical collection of the wines.
Mr Luke Lim, Managing Director of Phillip Securities, said: “Our clients have been looking at alternative investment vehicles to complement their portfolios. Thanks to the emergence of digital asset-backed securities, high-net-worth investors and family offices can add such rare and limited-edition luxury investments to their portfolios. This is part of our efforts to understand the changing needs and preferences of our clients and develop new investment opportunities for our clients.”
PhillipCapital and Alta, formerly known as Fundnel, had previously collaborated on other listings, including the successful launch of Southeast Asia’s First Whiskey-Based ABS tokens in early 2021. The whiskey-based ABS tokens were listed on Hg Exchange, which was acquired by Alta in September 2022. These tokens have been trading actively confirming strong investor interest in this type of alternative investment opportunity.
“We are excited to welcome the wine token listing to Alta. This project reflects the benefits of blockchain technology in democratising investments, allowing PhillipCapital to tokenise a world-class basket of wine assets, securely and affordably. This listing further strengthens our position as the leading marketplace for tokenised securities of high-end luxury assets,” said Willie Chang, Chief Operating Officer of Alta, who heads Alta’s exchange business.
Fine wines make interesting investment assets because they are not merely tangible but consumable. Just like its flavour, a wine’s value appreciates with age, making them a suitable medium to long-term investment, especially for favourable vintages that are in high demand by investors and wine enthusiasts.
With the favourably priced releases, the Bordeaux may see a possible increase in demand. The price of an En Primeur wine is expected to be lower than the release price on the market, and acquiring them or wine futures also allows investor to hold highly demanded wines that may potentially be impossible to find when they are released on the market.
Accredited investors who are interested in the EP wine token can contact any member firm of Alta’s exchange.
Since inception in 1975, PhillipCapital has grown into an integrated Asian financial house with a global presence, offering a full range of quality and innovative services to retail and high net worth individuals, family offices, as well as corporate and institutional customers.
Today, PhillipCapital headquartered in Singapore, operates in the financial hubs of 15 countries, including offices in Australia, Cambodia, China (and Hong Kong SAR), India, Indonesia, Japan, Malaysia, Singapore, Spain, Thailand, Turkey, UK, UAE, USA and Vietnam, serving over 1 Million clients with Assets Under Management of total more than USD 35 Billion.
Alta, formerly known as Fundnel, is Southeast Asia’s largest digital marketplace for alternative investments. Alta gives investors direct access to invest and trade in a wide range of curated alternative assets, from direct investment into early to late-stage private companies, PE/VC funds, asset-backed securities of luxury assets, real estate and more.
As a licensed integrated marketplace, Alta brings the trading and distribution of securities, fund management, and payments solutions under one roof. Through its blockchain-powered exchange, Alta is also able to support tokenisation, digital custody, and trading of alternative assets.
Today, while more investors are looking to increase their allocation to alternative assets, the high costs of investing and illiquidity of private markets can often give many investors pause. Alta makes it easier and more efficient than ever for investors to trade tokenized alternative assets at smaller, fractionalized blocks, thereby enhancing liquidity in the private markets, and bringing alternative assets to all.
Since 2016, Alta has completed over 1,000 transactions valued in excess of US$600 million and has created access for investors to invest in over US$22 billion worth of mandated opportunities globally.
Alta is headquartered in Singapore and operates offices globally.
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