PETALING JAYA: Kapital DX Sdn Bhd (KLDX) and Singapore-based Asia Digital Exchange Holdings Pte Ltd (AsiaNext) have signed a memorandum of understanding (MoU) aimed at facilitating cross-border listings, enhancing liquidity and developing innovative products for the digital assets market.
KLDX, leveraging blockchain technology, focuses on democratising access to private market assets that were traditionally limited to institutional and ultra-high-net-worth investors. KLDX is one of the only two licensed Initial Exchange Offering operators in Malaysia, registered with the Securities Commission.
Its founder and chief executive officer (CEO) Selvarany Rasiah said private markets have long been dominated by these groups. “We are here to change that paradigm and broaden investor access to private market assets,” she told StarBiz on the sidelines during the MoU signing ceremony yesterday.
The technology employed allows KLDX to fractionalise large asset classes, reducing the minimum investment required and enabling retail investors to participate.
“In Malaysia, there is a funding gap of RM90bil (for businesses), while RM800bil is sitting in current accounts and savings accounts. “We believe that there is an opportunity to unlock growth, solving the funding issue for businesses and matching the needs of investors seeking diversified asset classes for superior returns,” Selvarany noted.
The MoU outlines cross-listing of products between the exchanges, enabling Malaysian businesses to tap into Singapore’s liquidity, while AsiaNext gains access to Malaysian opportunities.
Joint product development and marketing will be key areas of focus, along with leveraging blockchain technology to ensure seamless, low-cost connectivity between the markets.
“Previously, the cost of technology made such innovation unfeasible. Now, with both exchanges being blockchain-enabled and ethereum virtual machine-compatible, connectivity is seamless and cost-effective,” added the CEO.
Moreover, KLDX aims to provide businesses with access to non-traditional asset classes such as real estate, intellectual property and revenue rights, with blockchain allowing investors to move assets easily between markets.
“For retail investors, the law limits how much they can invest – up to RM20,000 a year – but for angel investors, who meet certain income requirements, they can invest up to RM500,000,” Selvarany pointed out.
She also emphasised that the platform targets larger-scale fundraising efforts, particularly for companies aiming to raise between RM10mil and RM50mil, a space that has traditionally been challenging for businesses to secure funding.
According to her, while KLDX is industry-agnostic, it aims to facilitate fundraising for a broad range of companies, particularly in fast-growing sectors such as healthcare, technology, aerospace and semiconductors.
AsiaNext CEO Chong Kok Kee is of the view that digital assets, whether fractionalised or otherwise, can cater to investors’ appetite globally. “Blockchain technology allows for seamless connectivity across borders and we are committed to working with regulators to ensure that the distribution of securities is compliant on both sides.”
