Kenanga Investment Bank Berhad (KIB) via its wholly-owned private equity arm, Kenanga Private Equity Sdn Bhd, has entered into a conditional agreement to acquire 19% equity interest in Tokenize Technology (M) Sdn Bhd, a digital asset exchange that allows trading of cryptocurrencies.
Operating under the brand Tokenize Xchange, it is one of the three licensed digital asset exchanges (DAX) by the Securities Commission of Malaysia (SC).
KIB said that it has been “building a digital ecosystem to offer our customers a wide spectrum of financial products and services, including digital assets” and is “pleased to be given the opportunity to invest in one of the three licensed digital asset exchanges in Malaysia”.
Tokenize Xchange was initially launched in Singapore by founder Hong Qi Yu in 2018 and reportedly has a customer base of over 100,000.
Hong had later on set up Tokenize Malaysia to focus on the Malaysian market. In June 2019, Tokenize Malaysia was awarded a Recognized Market Operator (RMO) license to operate by SC and its platform, Tokenize Xchange, went live in April 2020.
“While we are keen on crypto as an asset class, we are aware of the volatility and the proliferation of unregulated players in the market. We applaud the Securities Commission as one of the first in Asia to introduce regulations in this area. Our interest in digital assets goes beyond Bitcoin and other commonly traded cryptocurrencies.
We believe that the technology behind digital assets is very powerful and the emergence of digital assets in the future is inevitable. We are hopeful that fund raising through the tokenisation of businesses and assets will be a significant part of the capital markets in the future for Malaysia.”
said Datuk Chay Wai Leong, Group Managing Director of Kenanga Investment Bank Berhad.
“We are very pleased to welcome onboard, Kenanga Investment Bank Berhad, one of the leading investment banks in Malaysia, as a key investor. The combined reach, expertise and resources is game-changing and will allow us to scale our presence in Malaysia.
Together we will shape the digital asset landscape and build an exciting path forward for investors in the country,”
remarked Hong Qi Yu, Chief Executive Officer, Tokenize Malaysia.
This investment in Tokenize Malaysia adds to the line-up of digital initiatives KIB has embarked on over recent years.
This includes its most recent one in February this year where it acquired i-VCAP Management Sdn Bhd, a Shariah-compliant investment management services provider primarily focused on Islamic exchange-traded funds (ETFs).
Additionally, KIB embarked on a joint-venture with Japan based Rakuten Inc to introduce an online stock trading platform in Malaysia, Rakuten Trade.
It also recently acquired a stake in Merchantrade, Malaysia’s leading e-money player and the country’s largest Money Services Business operator, following Kenanga’s recent collaboration with them to introduce Malaysia’s first stockbroker e-wallet, Kenanga Money.
Kenanga has also announced a partnership with digital supply chain financing company, Bay Group Holdings Sdn Bhd, with the rollout of a robo-advisory platform that will automate investment portfolio for clients in the pipeline this year.
Featured image: Kenanga tower
