Cryptosx Digital Asset Exchange (“Cryptosx”) announced today that they are working with HCS Whisky Segregated Portfolio Company (“HCS”) to have their whisky-backed security token listed on Cryptosx. This would be one of the world’s first listing of Securitize DS protocol security token on a licensed exchange that support both Centralised and Decentralised trading.
From Cryptosx CEO, Philip Tam, “we have been working with the HCS team which included top investment professional, legal, accounting and tokenisation firms in the field, for over 6 months. We are absolutely thrilled to have HCS token joining our exchange very soon.” This is a prime example of how tokenisation can turn high value illiquid assets into liquid assets and allow more investors to participate.”
Whisky as an Investment
Whisky has attracted a lot of attention as an alternative investment asset class in recent years. Premium Whisky has been setting record breaking prices at auctions repeatedly. According to the Rare Whisky 101 index, Whisky value has continued
increase despite the global COVID-19 outbreak. The temporary impact on the production side resulted in even more noticeable supply-demand imbalance.
HCS successfully completed first round funding in January 2020 and immediately set out to procure hundreds of barrels of carefully selected of single malt Scottish Whisky. These become the underlying asset of the portfolio, all of which are stored in UK bonded warehouses and distilleries. Notably, the casks are all personally
selected by Investment Advisor Mr. Howard Cai, one of the first Chinese to be honoured with the title, “The Keepers of the Quaich” since 2013, given by the Scotch Whisky industry.
Investment in barrels of Scottish Whisky has an extremely high entry barrier. A single 1995 Macallan cask recently sold for over £240,000 according to Sotheby’s auction result in June 2020. This type of investment also requires in-depth industry networks and knowledge to identify and manage the barrel in bonds. The risk of owning a single high value cask could be diversified by owning a collection of casks managed by a professional team. In order to fully unlock the appreciation potential of the premium Whisky, the barrels also need to be held for relatively long period, usually upwards of a decade.
With overwhelming demand for quality alternative investment assets globally, HCS expects to complete its second round of private placement before the end of the year.
Chief Investment Officer Alvin Ip expressed, “We are impressed by Cryptosx track record and experience in STO and excited to work with their team to make high quality premium Whisky barrels accessible to more professional investors. Their track record and experience in STOs are impressive. It will also benefit the Whisky industry as more stable capital are committed during volatile economic environment.
Empowered by world-leading technologies, Cryptosx is building a cutting-edge crypto exchange platform for STO backed by Fiat/Crypto conversion capabilities. The exchange is the preferred digital platform for companies wishing to tokenise their assets, issue and trade security tokens.
Cryptosx is compliant with all applicable financial and virtual exchange policies and regulations of the Philippine government under CEZA (Cagayan Economic Zone Authority). The exchange platform was awarded a Full Principal License by CEZA in 2018. Since then, Cryptosx has been working very closely with CEZA to further develop and enhance the STO listing procedures, as well as compliance and reporting requirements.
This press release does not constitute an offer or invitation to the public to acquire, or solicitation of an offer to buy, nor may there be any offer, invitation, solicitation or sale of, any investment product, securities or other interests in which such offer, invitation, solicitation or sale is not authorised, or to any person to whom it is unlawful to make any such offer, invitation, solicitation or sale.