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KUALA LUMPUR (Feb 8): Kenanga Investment Bank Bhd through its wholly owned Kenanga Private Equity Sdn Bhd is acquiring a 19% stake in digital asset exchange (DAX) operator Tokenize Technology (M) Sdn Bhd (Tokenize Malaysia) to accelerate buyers’ digital agenda. Tokenize Malaysia operates Tokenize Xchange, which enables the trading of cryptocurrencies such as Bitcoin and Ethereum.
In a statement today, Kenanga Investment said that Kenanga Private Equity has signed a conditional agreement to acquire the 19% stake in the capital stock of Tokenize Malaysia.
The statement does not specify how much Kenanga Private Equity is paying for the 19% stake in Tokenize Malaysia and from whom the stake is acquired.
“Operating under the Tokenize Xchange brand, (Tokenize Malaysia) is one of three DAX licensed by the Securities Commission Malaysia (SC), and is currently the second largest DAX in the country by traded market share. Tokenize Xchange is an exchange online that allows the trading of cryptocurrencies such as Bitcoin and Ethereum, and works 24 hours a day, 7 days a week, all year round.
“Tokenize Xchange was initially launched in Singapore by tech savvy founder Hong Qi Yu in 2018 and has since captured a customer base of over 100,000. Hong then set up Tokenize Malaysia to focus on the Malaysian market. In June 2019 , Tokenize Malaysia was received a Recognized Market Operator license to operate by SC and its platform, Tokenize Xchange, which was launched on April 1, 2020.
“Currently, the market capitalization of the global crypto market stands at $ 1.007 trillion, a three-fold increase from four months ago. Relative to the global equity market capitalization, which is estimated at nearly one hundred trillion dollars, there is still a huge edge to the cryptocurrency market. This investment in Tokenize Malaysia adds to the range of digital initiatives that Kenanga Investment has embarked on in recent years. These include the successful joint venture, with Rakuten. Japan-based Inc to introduce Malaysia’s first fully platform equity trading, Rakuten Trade, which has since experienced remarkable record volume growth, “said Kenanga Investment.
Kenanga Investment Group Managing Director Datuk Chay Wai Leong said in the statement that the group has been building a digital ecosystem to offer its clients a broad spectrum of financial products and services, including digital assets.
Chay said that the emergence of digital assets, including cryptocurrencies, has been gaining acceptance globally in recent years.
“While we are interested in cryptocurrencies as an asset class, we are aware of the volatility and proliferation of unregulated players in the market. Therefore, we are very happy to have the opportunity to invest in one of the three exchanges. of digital assets licensed in Malaysia, “he said.
Meanwhile, Tokenize Malaysia CEO Hong stated in the statement that the company’s interest in digital assets goes beyond Bitcoin and other commonly traded cryptocurrencies.
He did not elaborate.
“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 fundraising through the tokenization of businesses and assets will be an important part of the markets. future capital gains for Malaysia. We believe that through Tokenize Malaysia we can be a key player in the digital capital market space in Malaysia, “said Hong, who refers to Kenanga Investment as a key investor.
“The combined scope, expertise and resources are a game changer and will allow us to expand our presence in Malaysia. Together we will shape the digital asset landscape and create an exciting path for investors in the country,” he said.
In today’s Bursa Malaysia 12.30pm break, Kenanga Investment’s share price rose nine sen or 5.52% to RM1.72 for a market capitalization of around RM1.23 billion.
The last reported number of Kenanga Investment shares issued was 715.72 million.
More to follow
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