Nikko Asset Management Leads $15M Investment in Singapore‘s Chocolate Finance

Singapore – August 12, 2025 – Nikko Asset Management Co.,Ltd. has spearheaded a US$15 million Series A+ funding round for Chocolate Pte. Ltd., the Singapore-based fintech group operating as “neobank” Chocolate Finance. The investment signifies a strategic partnership aimed at bolstering Chocolate Finance’s position in the rapidly evolving digital finance landscape.

Chocolate Finance, a licensed fund management company, currently manages S$866 million in assets as of December 31, 2024. The company distinguishes itself by offering cash savings solutions that deliver stable, above-fixed deposit returns without imposing lock-in periods – a key differentiator in attracting risk-conscious investors.

Nikko Asset Management,one of Asia’s largest asset managers with US$234.8 billion under management (as of December 31, 2024), will leverage the partnership to expand its reach within the Southeast Asian fintech sector.

Allen & Gledhill served as transaction counsel to Nikko asset Management in the deal. A separate team from the firm also advised returning investor Peak XV Partners in the round.

Key Legal Advisors:

Nikko Asset Management: Julian Ho and Adrian Ang, Partners at allen & Gledhill.
Peak XV Partners: Wong Yi Jia, Partner at Allen & Gledhill.

The rise of ‘Neobanks’ and Alternative Investment Options

This investment underscores the growing trend of traditional asset managers partnering with and investing in fintech companies. ‘Neobanks’ like Chocolate Finance are disrupting traditional banking models by offering digitally-native, customer-centric financial products.

The appeal of Chocolate Finance’s model lies in its ability to provide competitive returns without the traditional constraints of fixed deposits. This is especially attractive in a low-interest rate environment, where consumers are actively seeking alternative avenues to grow their savings.

Implications for the Southeast Asian Fintech Ecosystem

The Series A+ funding is expected to fuel Chocolate finance’s expansion plans, potentially including product diversification and regional market penetration. The involvement of a major player like Nikko Asset Management lends further credibility to Singapore’s burgeoning fintech ecosystem and signals continued investor confidence in the region’s digital finance potential.

This deal highlights the increasing sophistication of the Southeast Asian investment landscape, with a clear focus on innovative financial solutions that cater to evolving consumer needs.

How does Allen & Gledhill’s investment in Chocolate Finance align with broader trends in legal sector involvement in Web3?

Allen & gledhill’s $15 Million Investment and Strategic Partnership with Chocolate Finance Catalyzes Growth and Innovation

Fueling FinTech Advancement: A Deep Dive

Allen & Gledhill, a leading Southeast Asian law firm, has announced a critically important $15 million investment in Chocolate Finance, a rapidly growing Web3 infrastructure provider. This isn’t merely a capital injection; it’s a strategic partnership poised to reshape the landscape of decentralized finance (DeFi) and digital asset services. The move signals a growing confidence in the long-term viability of blockchain technology and its potential to disrupt customary financial systems.This partnership focuses on bolstering Chocolate Finance’s technological capabilities and expanding its reach across key markets.

Understanding Chocolate Finance: Core Services & Technology

Chocolate Finance specializes in providing essential infrastructure for Web3 projects, including:

Node-as-a-Service (NaaS): Simplifying access to blockchain networks for developers.

Data APIs: Delivering reliable and extensive blockchain data for analytics and request development.

developer Tooling: Offering tools to streamline the building and deployment of decentralized applications (dApps).

Staking & Validator Services: Supporting the security and efficiency of Proof-of-Stake blockchains.

Their core technology focuses on scalability, security, and developer experience – critical components for mainstream Web3 adoption. The company currently supports major blockchains like Ethereum, BNB Chain, Polygon, and Avalanche, with plans for expansion. This focus on multi-chain support is a key differentiator in the increasingly fragmented Web3 ecosystem.

Allen & Gledhill’s Rationale: Beyond Legal Expertise

While known for its expertise in corporate law,regulatory compliance,and dispute resolution,Allen & Gledhill’s investment demonstrates a forward-thinking approach. The firm recognizes the increasing convergence of legal frameworks and blockchain technology.

Here’s a breakdown of the strategic benefits for Allen & Gledhill:

Enhanced Legal Tech Capabilities: Gaining firsthand insight into the technical complexities of Web3 will allow the firm to better advise clients navigating this evolving space.

Market Positioning: Establishing itself as a leader in the legal aspects of digital assets and DeFi.

Client Service Expansion: Offering a broader range of services to clients involved in blockchain-based ventures.

Innovation Driver: Fostering internal innovation and attracting talent with expertise in emerging technologies.

This investment isn’t about simply profiting from a rising market; it’s about proactively shaping the future of financial services law.the firm’s deep understanding of regulatory landscapes across Southeast Asia is especially valuable to Chocolate Finance’s expansion plans.

Impact on the Web3 Ecosystem: Catalyzing Innovation

The $15 million investment will be allocated to several key areas:

1. Technology Development: Expanding Chocolate Finance’s infrastructure to support new blockchains and features. This includes improvements to their API infrastructure and the development of new developer tools.
2. Geographic Expansion: Focusing on key markets in Southeast Asia, including Singapore, Indonesia, and Vietnam – regions experiencing rapid growth in Web3 adoption.
3. Talent Acquisition: Recruiting top engineers, developers, and blockchain experts.
4. Regulatory Compliance: Strengthening compliance measures to ensure adherence to evolving regulations.

This influx of capital is expected to accelerate the development of new dApps and Web3 services, fostering greater innovation within the ecosystem. The partnership also aims to address key challenges facing the industry, such as scalability, security, and regulatory uncertainty.

Regulatory Considerations & Legal Frameworks

The regulatory landscape surrounding digital assets remains complex and varies significantly across jurisdictions. Allen & Gledhill’s expertise in navigating these complexities will be crucial for Chocolate Finance’s growth. Key regulatory areas include:

Securities Laws: Determining whether digital assets qualify as securities and the associated compliance requirements.

Anti-Money Laundering (AML) & Know Your Customer (KYC) Regulations: Implementing robust AML/KYC procedures to prevent illicit activities.

Data Privacy Regulations: Ensuring compliance with data privacy laws, such as GDPR and PDPA.

Tax Implications: Addressing the tax implications of digital asset transactions.

The partnership will likely focus on developing best practices for regulatory compliance within the Web3 space, contributing to a more stable and enduring ecosystem. Allen & Gledhill’s involvement provides Chocolate Finance with a significant advantage in navigating these challenges.

Future Outlook: A Synergistic Relationship

The collaboration between Allen & Gledhill and Chocolate Finance represents a strategic

this document appears to be an excerpt from a response to public feedback on proposed amendments to Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) Notices and Guidelines. It focuses on two main areas:

1. Trust Relevant Parties of a Legal Arrangement:

The first section details requirements for trust companies regarding facts they need to obtain and hold on various parties associated with a trust or similar legal arrangement. Key points include:

Defining “Object of a Power”: clarifying who falls under this designation, specifically those with powers to deal with property or vary the arrangement.
Additional Information Requirements: Mandating the collection of specific information on:
The protector of the trust.
the class of beneficiaries and “object of a power.”
Any natural person(s) exercising ultimate effective control over the trust relevant party.
Applying Controller Identification: extending the rules for identifying “effective controllers” to all trust relevant parties.
Information on the Legal Arrangement: Requiring the collection of details about the arrangement itself, such as it’s name, unique identifier, deed, purpose, and management location.

General STR Filing timeline: STRs must be filed promptly, not exceeding five business days after suspicion is first established, unless there are exceptional circumstances.
Sanctioned Parties: For cases involving sanctioned individuals or entities (or those acting on thier behalf), STRs must be filed quickly, and no later than one business day after suspicion is first established.
Clarification on “Establishment of Suspicion”: MAS clarifies that this refers to the point when an institution concludes an STR is warranted based on available information and investigations. This does not include the time taken for fact-finding or investigations.
Processes for Higher ML/TF Risks: Financial Institutions (FIs) and Variable Capital Companies (VCCs) must have processes to:
Identify and prioritize high ML/TF risk concerns. Promptly review these high-risk concerns.
Escalate any high-risk concerns that cannot be reviewed promptly to senior management for appropriate mitigation measures.

The document also provides a link to the full “Response to feedback Received on proposed amendments to AML/CFT Notices and Guidelines.”

How do the updated MAS guidelines impact the identification and verification of ultimate beneficial owners (UBOs)?

MAS Issues Updated AML/CFT notices and Guidelines for Financial Institutions and VCCs

Key updates to Singapore’s AML/CFT Regime

The Monetary Authority of Singapore (MAS) has recently released updated notices and Guidelines concerning Anti-money Laundering and Countering the Financing of Terrorism (AML/CFT) for Financial Institutions (FIs) and Virtual Currency Custodians (VCCs). These revisions, effective immediately, represent a notable strengthening of Singapore’s commitment to maintaining its integrity as a global financial hub and combating illicit financial flows.This article breaks down the key changes and provides actionable insights for compliance teams.

Scope of the Updated Guidelines

The updated guidelines impact a broad spectrum of entities, including:

Banks: Commercial banks, merchant banks, and finance companies.

Capital Markets Services Licensees (CMSL): Fund managers, brokers, and corporate finance advisors.

Payment Service Providers (PSPs): Including those offering digital payment token (DPT) services.

Virtual Currency Custodians (VCCs): Entities providing custodial services for digital payment tokens.

Money Changers: Businesses involved in currency exchange.

Remittance Businesses: Companies facilitating money transfers.

the revisions aim to align Singapore’s AML/CFT framework with the latest recommendations from the financial Action Task Force (FATF) and address emerging risks, notably those related to virtual assets and digital finance.

Enhanced Customer Due Diligence (CDD) Requirements

A core focus of the updated notices is strengthening Customer Due Diligence (CDD) procedures. key changes include:

Beneficial Ownership Transparency: MAS emphasizes the need for FIs and VCCs to identify and verify the ultimate beneficial owners (UBOs) of legal entities, going beyond simply holding nominee shareholder information. Robust UBO identification is crucial.

Risk-Based approach to CDD: The guidelines reiterate the importance of a risk-based approach, tailoring CDD measures to the specific risks posed by each customer, product, and service. Higher-risk customers require enhanced due diligence (EDD).

Source of Wealth (SOW) and Source of Funds (SOF): Increased scrutiny on understanding the origin of customer wealth and the funds being transacted. Documentary evidence is now expected more frequently.

Politically Exposed Persons (PEPs): Enhanced due diligence requirements for dealing with PEPs and their close associates, including ongoing monitoring.

Virtual Asset (VA) and VCC Specific Requirements

The updates contain significant provisions specifically targeting Virtual Assets (VAs) and VCCs, reflecting the growing importance of this sector and associated risks.

Travel Rule Compliance: Strict adherence to the FATF’s “Travel Rule,” requiring VCCs to collect and transmit originator and beneficiary information for VA transfers exceeding SGD 1,500. Implementation challenges and solutions are being actively discussed within the industry.

sanctions Screening: Robust sanctions screening processes for VA transactions, utilizing up-to-date sanctions lists.

AML/CFT Controls for DPT Service Providers: Detailed guidance on implementing effective AML/CFT controls for DPT service providers, including transaction monitoring and suspicious transaction reporting (STR).

Custodial wallet Management: Specific requirements for the secure management of custodial wallets holding VAs, including segregation of customer assets.

Transaction Monitoring and Suspicious Transaction Reporting (STR)

MAS has reinforced the importance of robust transaction monitoring systems and timely STR filing.

Enhanced Transaction Monitoring: FIs and vccs are expected to implement sophisticated transaction monitoring systems capable of detecting unusual patterns and suspicious activity. This includes leveraging data analytics and machine learning.

STR Quality: Emphasis on the quality of STRs filed with the Suspicious Transaction Reporting Office (STRO). Reports must be complete, accurate, and well-documented.

Internal Reporting Procedures: Clear internal reporting procedures for employees to escalate suspicious activity.

Regular System Testing: Periodic testing of transaction monitoring systems to ensure effectiveness.

Record Keeping Requirements

The updated guidelines reiterate the importance of maintaining comprehensive and accurate records.

Retention Periods: Specific retention periods for customer due diligence records, transaction records, and STRs.

Accessibility: Records must be readily accessible to MAS for inspection.

Data Integrity: Measures to ensure the integrity and confidentiality of records.

Reduced Regulatory Risk: minimizes the risk of penalties and sanctions from MAS.

Enhanced Reputation: Demonstrates a commitment to ethical conduct and responsible financial practices.

Improved Risk Management: Strengthens overall risk management capabilities.

Increased Customer trust: Builds trust with customers and stakeholders.

Gap Analysis: Conduct a thorough gap analysis to identify areas where current AML/CFT programs fall short of the updated requirements.

* Policy and Procedure Updates: revise AML/CFT policies and