Blockchain-based whisky exchange launches in Singapore

Scotch whisky has historically high yields

Investing in whisky, particularly in high-end, exclusive single malt Scotch, instead of simply enjoying a glass has become increasingly popular among wealthy global investors, even more so in a time of lockdowns when digital trading activities are seeing a huge rise.

The latest addition is a blockchain-based service for buying and selling high-end bottles of the liquor at Singapore-based private exchange HGX, a trading board for high-value luxury items.

HGX in a first for Southeast Asia is now allowing professional investors, as well as wealthy individuals with a net worth of at least two million Singapore dollars ($1.5 million), to trade digital tokens pegged to bottles of rare single malt Scotch whiskies from prestigious distilleries.

Each token represents one bottle of rare liquor, currently valued at between $950 and $1,490, depending on exclusivity. Investors can buy the tokens at any stage of a whisky’s lifecycle and cash out after the whisky matured in casks and is bottled. They will have the choice of taking delivery of a bottle or receiving cash for however much the liquid is then worth.

“Casks of Distinction” collection contains the finest liquor

The whiskies are provided by Rare Cask Holdings, a subsidiary of Singapore-based PrimePartners Corporate Finance Holdings. The premium whisky collection called “Casks of Distinction” was tokenized by Singapore-based fintech Zilliqa, a partner of the HGX exchange.

“The Casks of Distinction represent a collection of rare, high-quality single malt scotch whisky casks being held and matured at Scottish distilleries, including a Port Ellen 1979, a Mortlach 1993, a Caol Ila 1990, a Benrinnes 1992 and a Talisker 1989, each of which are estimated to mature between 2022 and 2025,” Saayan Choudhury, senior director of commercial technology at Zilliqa, said.

“Within the spectrum of alternative assets, whisky has proven itself to be the most liquid,” added Gerald Ong, deputy chairman of PrimePartners, noting that among other nontraditional investment options such as wine and art, Scotch whisky has provided the highest returns of more than 560 per cent over the past decade,”

Whisky investments yielded more than 500 per cent over the past ten years

This roughly corresponds with results in the 2020 Wealth Report by UK-based consultancy Knight Frank which found that rare whiskies were one of the most lucrative alternative investments over a ten-year period, with a 582-per cent increase in value, outperforming other collectibles such as rare coins, cars and stamps.

Ong said that with strong demand in India, China, Japan and Taiwan, the time was right to launch digital whisky asset trading, and investors have already snapped up two-thirds of the initial batch of available digital whisky tokens.

Back in 2018, the Scottish whiskey market as a whole was valued at almost $5 billion, with an estimated market size of over $7.8 billion predicted by 2027.



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Scotch whisky has historically high yields Investing in whisky, particularly in high-end, exclusive single malt Scotch, instead of simply enjoying a glass has become increasingly popular among wealthy global investors, even more so in a time of lockdowns when digital trading activities are seeing a huge rise. The latest addition is a blockchain-based service for buying and selling high-end bottles of the liquor at Singapore-based private exchange HGX, a trading board for high-value luxury items. HGX in a first for Southeast Asia is now allowing professional investors, as well as wealthy individuals with a net worth of at least two...

Scotch whisky has historically high yields

Investing in whisky, particularly in high-end, exclusive single malt Scotch, instead of simply enjoying a glass has become increasingly popular among wealthy global investors, even more so in a time of lockdowns when digital trading activities are seeing a huge rise.

The latest addition is a blockchain-based service for buying and selling high-end bottles of the liquor at Singapore-based private exchange HGX, a trading board for high-value luxury items.

HGX in a first for Southeast Asia is now allowing professional investors, as well as wealthy individuals with a net worth of at least two million Singapore dollars ($1.5 million), to trade digital tokens pegged to bottles of rare single malt Scotch whiskies from prestigious distilleries.

Each token represents one bottle of rare liquor, currently valued at between $950 and $1,490, depending on exclusivity. Investors can buy the tokens at any stage of a whisky’s lifecycle and cash out after the whisky matured in casks and is bottled. They will have the choice of taking delivery of a bottle or receiving cash for however much the liquid is then worth.

“Casks of Distinction” collection contains the finest liquor

The whiskies are provided by Rare Cask Holdings, a subsidiary of Singapore-based PrimePartners Corporate Finance Holdings. The premium whisky collection called “Casks of Distinction” was tokenized by Singapore-based fintech Zilliqa, a partner of the HGX exchange.

“The Casks of Distinction represent a collection of rare, high-quality single malt scotch whisky casks being held and matured at Scottish distilleries, including a Port Ellen 1979, a Mortlach 1993, a Caol Ila 1990, a Benrinnes 1992 and a Talisker 1989, each of which are estimated to mature between 2022 and 2025,” Saayan Choudhury, senior director of commercial technology at Zilliqa, said.

“Within the spectrum of alternative assets, whisky has proven itself to be the most liquid,” added Gerald Ong, deputy chairman of PrimePartners, noting that among other nontraditional investment options such as wine and art, Scotch whisky has provided the highest returns of more than 560 per cent over the past decade,”

Whisky investments yielded more than 500 per cent over the past ten years

This roughly corresponds with results in the 2020 Wealth Report by UK-based consultancy Knight Frank which found that rare whiskies were one of the most lucrative alternative investments over a ten-year period, with a 582-per cent increase in value, outperforming other collectibles such as rare coins, cars and stamps.

Ong said that with strong demand in India, China, Japan and Taiwan, the time was right to launch digital whisky asset trading, and investors have already snapped up two-thirds of the initial batch of available digital whisky tokens.

Back in 2018, the Scottish whiskey market as a whole was valued at almost $5 billion, with an estimated market size of over $7.8 billion predicted by 2027.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

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