Kenanga Investment Bank, a Malaysian-based financial services company, announced today that it has entered into a conditional agreement to acquire 19% equity interest in Tokenize Xchange, a crypto exchange licensed by the Securities Commission of Malaysia (SC).
According to the official announcement, Tokenize Xchange is one of the only three licensed digital exchanges in Malaysia. In terms of traded market share, Tokenize is the second-largest crypto exchange in the country. The exchange offers the trading of leading digital currencies including Bitcoin and Ethereum.
The Kuala Lumpur-based investment bank is planning to enter the crypto market with the latest investment in Tokenize. Founded in 1973, Kenanga currently offers traditional financial services including investment banking and brokerage services. The firm is also listed on the Kuala Lumpur Stock Exchange.
Commenting on the recent announcement, Datuk Chay Wai Leong, Group Managing Director of Kenanga Investment Bank Berhad, 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 has 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.”
Hong Qi Yu launched Tokenize Xchange in Singapore initially and established Tokenize Malaysia a few months later to expand into the Malaysian region. The crypto platform is planning to increase its presence in Malaysia with the recent investment by the Kenanga Investment Bank.
“We are very pleased to welcome Kenanga Investment Bank Berhad, one of the leading investment banks in Malaysia, as a key investor. The combined reach, expertise, and resources are 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,” Hong Qi Yu, CEO of Tokenize Malaysia mentioned in the official announcement.