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Alternative Investment

Singapore Firm Launches Digital En Primeur Wine-Based Tokens

Phillip Capital’s first digital En Primeur Wine-based Token provides an alternative investment opportunity to cater to the needs of modern-day investors.

Singapore-based Phillip Capital has launched wine tokens, known as «the En Primeur tokens» (EP) that will be traded on Alta’s exchange platform, according to a company release.

Each asset-backed securities (ABS) digital token is linked to a parcel of 36 bottles of 16 wine labels, representing the finest wines of the 2020 Bordeaux EP vintage such as Lafite Rothschild, Haut Brion, and Mouton Rothschild.

Changing Needs

Upon bottling in 2023, or at the maturity of the secured notes in 2026, investors can opt to redeem for payment from the sale of wines or physical collection of the wines.

«Thanks to the emergence of digital asset-backed securities, high-net-worth investors and family offices can add such rare and limited-edition luxury investments to their portfolios. This is part of our efforts to understand the changing needs and preferences of our clients and develop new investment opportunities for our clients,» said Luke Lim, managing director of Phillip Securities.

Whiskey-based Tokens

Phillip Capital and Alta, formerly known as Fundnel, had previously collaborated on other listings, including the successful launch of Southeast Asia’s First Whiskey-Based ABS tokens in early 2021.

The whiskey-based ABS tokens were listed on Hg Exchange, which was acquired by Alta in September 2022. These tokens have been trading actively confirming strong investor interest in this type of alternative investment opportunity.

Highly Demanded Wines

The Bordeaux may see a possible increase in demand due to favorably priced releases. The price of an En Primeur wine is expected to be lower than the release price on the market, and acquiring them or wine futures also allows investors to hold highly demanded wines that may potentially be impossible to find when they are released on the market, said the release.

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