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Kenanga Investment Bank Berhad, one of the largest financial services firms in Malaysia, enters the cryptocurrency industry with a new investment.

According to an official February 8 AnnouncementKenanga has entered into a conditional agreement to acquire a 19% equity stake in a licensed crypto exchange. The investment was facilitated by Kenanga’s wholly owned private equity arm Kenanga Private Equity.

Under the agreement, Kenanga will invest in Tokenize Technology, the operator of the local crypto exchange Tokenize Xchange. Offering trading services for major cryptos such as Bitcoin (BTC) and Ether (ETH), the platform is one of three licensed digital asset exchanges regulated by the Malaysia Securities Commission. According to Kenanga, Tokenize Xchange is the second largest digital asset exchange in terms of market share in Malaysia.

Datuk Chay Wai Leong, group director of Kenanga Investment Bank Berhad, said, “We have built a digital ecosystem to provide our clients with a broad spectrum of financial products and services, including digital assets.”

“Our interest in digital assets extends beyond Bitcoin and other commonly used cryptocurrencies. We believe that the technology behind digital assets is very powerful and that the emergence of digital assets is inevitable in the future, ”he added.

A spokesperson for Kenanga Investment Bank Berhad declined to provide further details about the investment.

Kenanga is one of the largest financial services companies in Malaysia, Reportedly owns Malaysia’s largest independent investment bank by share trading and volume. The company is a well-known partner of Japanese crypto-friendly retail giant Rakuten, the provision with a joint online stock trading platform, Rakuten Trade, in Malaysia.

End of 2020, Malaysia adopted new guidelines regarding digital assets by the Securities Commission Malaysia. The rules are aimed at custodians of digital assets and initial exchange offers and aim to promote “responsible innovation in the digital asset space”, manage potential risks and protect the interests of issuers and investors.