KUALA LUMPUR (Feb 8): Kenanga Funding Financial institution Bhd by way of its wholly-owned Kenanga Non-public Fairness Sdn Bhd is buying a 19% stake in digital asset trade (DAX) operator Tokenize Know-how (M) Sdn Bhd (Tokenize Malaysia) to speed up the consumers’ digital agenda. Tokenize Malaysia operates Tokenize Xchange which permits buying and selling of cryptocurrencies like Bitcoin and Ethereum.
In an announcement at the moment, Kenanga Funding mentioned Kenanga Non-public Fairness has entered right into a conditional settlement to accumulate the 19% fairness curiosity in Tokenize Malaysia.
The assertion didn’t specify how a lot Kenanga Non-public Fairness is paying for the 19% stake in Tokenize Malaysia and from whom the stake is being acquired.
“Working underneath the model Tokenize Xchange, it (Tokenize Malaysia) is likely one of the three licensed DAX by the Securities Fee Malaysia (SC), and is presently the second largest DAX within the nation by traded market share. Tokenize Xchange is a web based trade that enables buying and selling of cryptocurrencies similar to Bitcoin and Ethereum, and operates 24X7, complete 12 months spherical.
“Tokenize Xchange was initially launched in Singapore by tech savvy founder Hong Qi Yu in 2018 and it has since captured a buyer base of over 100,000. Hong afterward arrange Tokenize Malaysia to concentrate on the Malaysia market. In June 2019, Tokenize Malaysia was awarded a Acknowledged Market Operator licence to function by SC and its platform, Tokenize Xchange, which went stay on April 1, 2020.
“Presently, the market capitalisation of the worldwide crypto market stands at US$1.007 trillion (about RM4.088 trillion), a spike of threefold from 4 months in the past. Relative to the worldwide fairness market capitalisation which is estimated to be almost within the hundred trillion value, there may be nonetheless ample upside to the crypto market. This funding in Tokenize Malaysia provides to the line-up of digital initiatives Kenanga Funding has launched into over current years. These embody the profitable three way partnership, with Japan-based Rakuten Inc, to introduce the primary totally on-line inventory buying and selling platform in Malaysia, Rakuten Commerce, which has since seen outstanding document quantity development,” Kenanga Funding mentioned.
Kenanga Funding group managing director Datuk Chay Wai Leong mentioned within the assertion the group has been constructing a digital ecosystem to supply its prospects a large spectrum of economic services and products, together with digital belongings.
Chay mentioned the emergence of digital belongings together with cryptocurrencies has been gaining acceptance globally in the previous few years.
“Whereas we’re eager on cryptocurrencies as an asset class, we’re conscious of the volatility and the proliferation of unregulated gamers out there. We’re subsequently very happy to be given the chance to spend money on one of many three licensed digital asset exchanges in Malaysia,” he mentioned.
In the meantime, Tokenize Malaysia chief govt officer Hong claimed within the assertion that the corporate’s curiosity in digital belongings goes past Bitcoin and different generally traded cryptocurrencies.
He didn’t elaborate.
“We consider that the expertise behind digital belongings could be very highly effective and the emergence of digital belongings sooner or later is inevitable. We’re hopeful that fundraising via the tokenisation of companies and belongings shall be a major a part of the capital markets sooner or later for Malaysia. We consider that via Tokenize Malaysia we generally is a key participant within the digital capital market area in Malaysia,” mentioned Hong, who refers to Kenanga Funding as a key investor.
“The mixed attain, experience and assets is game-changing and can enable us to scale our presence in Malaysia. Collectively we’ll form the digital asset panorama and construct an thrilling path ahead for traders within the nation,” he mentioned.
At Bursa Malaysia’s 12.30pm break at the moment, Kenanga Funding’s share worth rose 9 sen or 5.52% to RM1.72 for a market capitalisation of about RM1.23 billion.
Kenanga Funding’s newest reported variety of issued shares stood at 715.72 million.