Hg Exchange launches Southeast Asia’s first digital, whisky-based Asset-Backed Securities (ABS), with five ABS available for trading.

There are many ways for whisky enthusiasts to invest in whisky: purchase some rare vintage bottles in the hopes that prices rise over time, put some money into a whisky fund, or participate in a cask ownership programme. Now there’s a new option: digital whisky. Hg Exchange – the private member-driven securities exchange founded by PhillipCapital, PrimePartners, Fundnel and Zilliqa – earlier this week launched Southeast Asia’s first digital, whisky-based Asset-Backed Securities (ABS) with the listing of five tokens each linked to a specific cask of whisky in Scotland.

The five whisky-linked digital tokens listed by Rare Cask Holdings Pte Ltd, a wholly-owned subsidiary of PrimePartners Corporate Finance Holdings, are:

  • Port Ellen 1979
  • Mortlach 1993
  • Coal Ila 1990
  • Benrinnes 1992
  • Talisker 1989

Whisky connoisseurs would be quick to note that all five tokens are linked to whiskies aged 28 years and above from iconic Diageo distilleries. Whiskies similar to these have gone on to achieve high prices in the whisky auction markets. The Port Ellen 1979, in particular, is expected to do very well, with stocks of Port Ellen whisky from the now-silent distillery closed in 1983 largely depleted.

Indeed the Port Ellen ABS hit a list price of GBP 12,000 at 4PM on 25 Jan 2021, a gain of more than 30% over its launch price, with the other four tokens gaining as well at a total trading value of GBP 700,000.

Willie Chang, Chief Operating Officer of HGX, said: 

“The whisky-based ABS was well traded on its first day confirming strong investor interest for this type of alternative investment opportunity and highlighting the benefits of the liquidity offered by listing on Hg Exchange,” said Willie Chang, Chief Operating Officer of HGX.

“The ABS now trades alongside a growing number of other financial securities on the exchange including private company equities, private equity and venture capital funds, and real estate,” Chang added.

“We are delighted by the positive reaction to this whisky-based ABS from Accredited Investors in Singapore, across Asia and around the world,” shared Gerald Ong, Deputy Chairman and Executive Director of PrimePartners Corporate Finance Holdings.

“In particular, we are excited to see the Port Ellen generate an over 30% return in today’s trading. The liquidity of the products demonstrate an active market in this exclusive portfolio of rare whisky casks.”

Accredited Investors interested in trading in the whisky-based ABS can contact the Hg Exchange member firms PhillipCapital, PrimePartners or Fundnel.


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