Tokenize Xchange is one of the three Digital Asset Exchanges (DAX) licensed by the Securities Commission of Malaysia
Kenanga Investment Bank building. (Credit: Kenanga Investment Bank Berhad.)
Kenanga Investment Bank, through its wholly-owned private equity arm Kenanga Private Equity, has reached a conditional agreement to acquire a 19% stake in Tokenize Technology, a digital trading platform in Malaysia.
Tokenize operates under the brand Tokenize Xchange and is among the three Digital Asset Exchanges (DAX) licensed by the Securities Commission (SC) of Malaysia.
Tokenize Xchange is an online exchange that facilitates continuous trading of cryptocurrencies including Bitcoin and Ethereum, throughout the year.
The company is said to be the second-largest DAX in the country in terms of its traded market share. It has a customer base of more than 100,000.
Tokenize Malaysia CEO Hong Qi Yu said: “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.”
Tokenize Xchange was initially launched in Singapore in 2018, and Tokenize Malaysia was established later in 2019, to focus on the Malaysia market.
The investment in Tokenize Malaysia is the recent addition to the Kenanga Investment Bank’s digital initiatives in recent years.
The digital initiatives include joint-venture with Japan-based Rakuten, dubbed Rakuten Trade, to introduce the first fully online stock trading platform in Malaysia.
Also, the company has recently acquired a stake in Merchantrade Asia, a Malaysia-based large-scale money services business operator.
Kenanga has recently collaborated with Merchantrade to introduce first stockbroker e-wallet offering, dubbed Kenanga Money.
Kenanga Investment Bank managing director Datuk Chay Wai Leong said: “We have been building a digital ecosystem to offer our customers a wide spectrum of financial products and services, including digital assets.
“The emergence of digital assets including cryptocurrencies have been gaining acceptance globally in the last few years. 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 are therefore very pleased to be given the opportunity to invest in one of the three licensed digital asset exchanges in Malaysia. We applaud the Securities Commission as one of the first in Asia to introduce regulations in this area.”
Recently, Kenanga Investment Bank has acquired i-VCAP Management (i-VCAP), a shariah-compliant investment management services provider, after securing regulatory approval.