HashKey Holdings Limited said its wholly owned subsidiary, HKDAG (Singapore) Pte. Ltd., has signed a non-legally binding framework agreement with the major shareholders of Asia Pacific Exchange Pte. Ltd. and APEX for a proposed acquisition of all equity interests in APEX.
APEX holds two key Singapore market infrastructure licenses
APEX and its group operate a comprehensive financial market infrastructure business in Singapore. APEX is a licensed derivatives exchange in Singapore and holds an Approved Exchange, or AE, license issued by the Monetary Authority of Singapore. Its subsidiary, Asia Pacific Clear Pte. Ltd., holds an Approved Clearing House, or ACH, license and has integrated issuance and clearing capabilities.
Under Singapore’s regulatory system, HashKey said only three institutions in the market currently hold both of those licenses.
HashKey says the deal would expand its institutional market infrastructure
If completed, the proposed acquisition would help HashKey strengthen its trading and clearing infrastructure for the institutional market, according to the company. HashKey said the move would support the buildout of a new-generation financial infrastructure covering trading, custody, payments, clearing and settlement, while improving its overall service capacity for financial institutions and institutional-grade market participants.
The company also said Singapore remains a major international financial center in Asia and continues to hold a leading position in financial market infrastructure and financial technology development. In HashKey’s view, the proposed acquisition would deepen the group’s regulated business presence in a core Asian financial market and is in line with its globalization strategy and multi-jurisdiction fintech platform plan.
Completion depends on final agreements and MAS approval
HashKey said the proposed acquisition will only proceed if final documents are signed and approval is obtained from the Monetary Authority of Singapore. As of now, the group has not entered into any definitive agreement for the transaction and has not secured the required MAS approval. The company said the acquisition may or may not proceed.
If the parties sign final documents after completing, among other things, due diligence on the target group, the company expects the transaction to constitute a discloseable transaction under Chapter 14 of the Listing Rules. HashKey said it will make further announcements on the proposed acquisition in due course and in compliance with the Listing Rules.
About HashKey Holdings
HashKey Holdings Limited, stock code 3887.HK, describes itself as an integrated digital asset company in Asia with operations across licensed jurisdictions globally. The company said it builds a digital asset ecosystem through end-to-end financial infrastructure, technology and investment management, and provides trade facilitation, on-chain services and asset management through licensed digital asset platforms.