Kenanga Investment Bank Berhad through its private equity arm Kenanga Private Equity Sdn Bhd has announced that it has entered into a conditional agreement to acquire a 19.0% equity interest in Tokenize Technology (M) Sdn Bhd (Tokenize Malaysia). Tokenize Exchange is one of Malaysia’s three licensed Digital Asset Exchanges (DAX) that have received approval by the Securities Commission of Malaysia (SC).
Commenting on the acquisition, Kenanga Investment Bank Group 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.”
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 is said to be the second largest DAX in Malaysia by traded value and it offers an online exchange platform that allows trading of cryptocurrencies such as Bitcoin and Ethereum. Tokenize Xchange was initially launched in Singapore by Hong Qi Yu in 2018 and it claims to have over 100,000 customers. They were awarded a Recognised Market Operator (RMO) license by SC in June 2019 and the platform went live on 1st April 2020. The other two registered DAX in Malaysia are Luno Malaysia and SINEGY Technologies.
According to Kenanga Investment Bank, the acquisition adds to its lineup of digital initiatives that it has embarked on over the recent years. They had introduced Rakuten Trade, the first fully online stock trading platform in Malaysia in a joint-venture with Rakuten Inc of Japan. Kenanga has also acquired a stake in Merchantrade Asia Sdn Bhd (Merchantrade) after its collaboration to introduce Malaysia’s first stockbroker eWallet, Kenanga Money.