In a recent announcement, financial services firm Chocolate Finance has assured its clients that all withdrawal requests will be processed in an orderly manner following an unexpected surge in withdrawal demands on March 10. The company, operating out of Singapore, stated that clients who submitted requests can anticipate receiving their funds within three to six business days, adhering to standard investment fund redemption timelines.

Walter de Oude, CEO and founder of Chocolate Finance, reinforced the platform's commitment to providing a secure and transparent user experience. “Despite the spike in withdrawals, we are managing to process all requests in a structured manner,” he asserted. “We ensure that our customers' funds are secure and withdrawals are being executed as planned.”

To enhance security and compliance, Chocolate Finance continues its collaboration with Allfunds, its licensed custodian. David Perez de Albeniz, CEO of Allfunds Singapore, confirmed that customer fund holdings are entirely segregated and ring-fenced in line with Singapore regulations, thus guaranteeing the safety of investment assets.

In light of the intense demand for withdrawals, Chocolate Finance had temporarily suspended instant withdrawals, indicating on its mobile app that users may face delays of up to 10 days in receiving their funds. However, the platform aims to stick to the normal redemption process where possible.

Chocolate Finance operates under the umbrella of the private company Chocfin and is licensed by the Monetary Authority of Singapore (MAS) as a fund management service provider. The firm employs licensed custodians such as HSBC to ensure that client funds remain distinct from the company’s operational finances, safeguarding user investments.

The platform typically invests in short-duration fixed-income funds and money market funds through its managed account. Though it offers a range of investment options, it clarifies on its website that it does not qualify as a money market fund itself. Money market funds generally invest in short-term debt securities and cash, appealing to investors searching for low-risk, short-term funds.

The MAS emphasizes that digital advisers must segregate customer assets meticulously and hold them in independent custody under the regulation. The safety of customer funds is paramount; therefore, these assets cannot be utilized to settle any liabilities that the adviser may have.

In light of these principles, the MAS confirmed that both Chocolate Finance and Allfunds have adhered to these requirements fully. The central bank is committed to closely monitoring the situation to ensure that withdrawals for all customers will continue to happen in an orderly manner.

As stakeholders remain vigilant, both clients and regulators are optimistic that Chocolate Finance will navigate these tumultuous waters successfully, maintaining the trust that customers place in the digital finance ecosystem.