PETALING JAYA: The Labuan Financial Services Authority (Labuan FSA) has issued the first digital banking (investment bank) licence to Asia Digital Bank (AsiaDB), a wholly owned subsidiary of Chinese-funded offshore bank Asia Pacific Investment Bank (APIB).
APIB is established by China Nanjing Zijin Investment Group Co Ltd. AsiaDB will now strive to establish its digital presence in Malaysia.
AsiaDB CEO Chris Wang said it aims to construct a world-leading digital asset trading and self-financing platform, and to promote the transformation of the traditional financing into a comprehensive digital finance ecosystem.
AsiaDB’s digital financing products will incorporate centralised financing services and decentralised financing protocol clusters and will make use of the combination between multiple modules to create a comprehensive digital financing infrastructure. Relying on this platform, AsiaDB will actively carry out multiple tests, and enhance the stability of the platform system and increase the diversity of platform products through recruitment of talents in key areas such as product design and technology development.
In the future, AsiaDB will make use of the platform to further improve the digital ecosystem in the region, by providing core services such as cross-border investment and financing capabilities, digital asset management, as well as cross-border structured trade financing. This platform, through the “global capital and digital operating” model, will effectively help small and medium-sized enterprises in Malaysia to reduce their operating costs in the form of non-ringgit currency. On the other hand, it will enable high-quality investors from Asean and the world to participate in and share the fruits of regional economic growth.
“We are optimistic about the future development prospects of the digital economy in Malaysia and the Asean region, especially in the later stage of the pandemic where industries and businesses will be accelerating and eagerly looking for ways to undergo rapid digital transformation, creating a demand surge in digital financing services,” said Wang.
His conviction is based on three perspective: Firstly, the current Covid-19 pandemic has spawned a new Asean digital economy blue ocean. Secondly, the signing of the Regional Comprehensive Economic Partnership will bring forth benefits for the development of digital economy especially digital trades. Thirdly, governments in Asean, especially the Malaysian government, has provided strong policy support for the development of digital economy and finance as well as new innovations in financial technology.