ERX Co Ltd, a licensed digital asset exchange focused on investment and utility tokens, aims to list at least three asset-backed digital tokens this year to offer investors greater yields.
ERX received approval from the Finance Ministry and a licence to operate as a regulated digital asset exchange from the Securities and Exchange Commission in July. The company has been operating since Oct 1.
Founded in May 2019 and having existing registered capital of 85 million baht, ERX's largest shareholder is the Elevated Returns (ER) group, a pioneer in the digital securities industry with expertise in real estate investment in the US.
ER is best known for its tokenisation of the St. Regis Resort in Aspen, Colorado, which raised US$18 million in funds via its issuance of Aspen Coin tokens that were derived from the hotel's assets.
ERX chief executive Pinpraaj Chakkaphak said the exchange plans to list 1-3 digital tokens this year, with some tokens related to the real estate business, in order to enhance investor confidence.
"We operate as Thailand's only digital-token-focused exchange and aim to become Asia's leading digital assets exchange," Mr Pinpraaj said.
He said ERX stands apart from other digital asset exchanges due to its focus solely on digital tokens, which exclude cryptocurrencies.
Security provision and investor protection are enabled for every token that is exchanged, as digital tokens derive their value from traditional assets.
"Our main target groups are investors experienced in traditional investment options such as stocks and funds, and those who are looking for new types of assets that offer greater yields such as digital tokens," Mr Pinpraaj said. "We are also targeting new-gen investors who have yet to start investing, with greater ease and convenience and without prohibitively high initial investment amounts."
Two types of digital tokens will be traded on the ERX platform: investment tokens and utility tokens.
Investment tokens specify the right of a person to participate in an investment in any project or business. They are similar to a securities or investment unit backed by real-world assets.
Utility tokens, meanwhile, specify the right of a person to acquire specific goods, services or any other specific rights.
The advantage of converting existing assets such as real estate, intellectual property or infrastructure into a digital token format is the lower operating cost, Mr Pinpraaj said.