CGCX.io, a South Korean cryptocurrency exchange is collaborating with two other organizations, Archipelago Group, and IBH Capital. The trio is set to launch the world’s first physical Blockchain bank in Labuan, Malaysia’s federal territory. The said bank will handle financial investments related to the Blockchain, cryptocurrency, and other digital banking services.
Bridging the Gap Between Traditional and Blockchain Investments
The exchange has said that the aim of the Blockchain bank, is to bridge the gap between the traditional methods and cryptocurrency investments. This is by providing banking services to the industry in an effective and timely manner. It will also help in expanding the business of each company that is involved in its development.
CGCX.io will be the primary funder of the project and reports reveal that this is an exchange that has attained a daily trading volume of $10 million. They were also able to raise about $32.5 million during their Initial Coin Offering (ICO). Accordingly, the exchange will create a secure digital wallet for the investment bank. They will also release $100 million worth of STO to ensure that the bank is well funded from its inception.
Crypto Exchange Partners With Insurance Group and Bank
To ensure that their alliance is backed by the law, a memorandum of understanding has been signed by the trio. The terms of the agreement are binding for one year and there are hopes that the bank may be set up during that time. Therefore, the collaborators have also sought the support of the other companies who may be interested in the project.
Archipelago, a participant in the proposed bank, is an insurance group which supports Blockchain and cryptocurrency operations. IBH Capital, on the other hand, is an investment bank which is said to have a global affiliation in excess of $1 billion. A collaboration between these two and an exchange company is expected to yield positive results.
Malaysia is Adopting Blockchain Technology in Different Sectors
More news is arising about Malaysia and its adoption of the Blockchain technology. In November this year, the country began using Blockchain to aid in the traceability of degree certificates. This was as a result of the high level of fake degrees that are in circulation. It was also noted that the process of verifying these documents is cumbersome.
Also, the country’s Automotive industry has decided to settle for the Distributed Ledger Technology to aid in the circulation of original spare parts. Consumers will also be the ones to determine the value of these devices in order to regulate their prices. Besides, commercial vehicles will have a unique ID created for them, which will then be stored on the Blockchain.