A collaboration between crypto exchange CGCX.io, Malayan Archipelago and IBH Capital will see the creation of the world’s first blockchain-based bank with a physical brick-and-mortar style branch.
Malayan Archipelago is an international insurance firm that supports cryptocurrency investments and fiat conversions and IBH Capital is an investment and asset management company with a modern take on traditional banking. Howard Choo, MD of IBH Capital, which enjoys a global affiliation in excess of $1 billion, spoke of the fast-paced nature of today’s financial marketplaces:
“But the more things change, the stronger our commitment in upholding our core approach – building value for our investors by staying true to our client-focused approach,” he said.
The new bank will be based in the popular crypto hub of Labuan, Malaysia, and its blockchain activities will be managed by CGCX.io, a Singapore outfit that raised $32.5 million in its recent initial coin offering (ICO). CGCX.io touts itself as the world’s first “insured crypto exchange” and offers both crypto-to-fiat as well as fiat-to-fiat trading.
CGCX.io CEO Anandh Swami states: “CGCX.io is setting itself apart in the Distributed Ledger Technology field by providing five platforms rolled into one to offer a wide variety of services to its customers.”
It is believed that CGCX.io will donate $100 million worth of its digital token, STO, to support the establishment of crypto services within the bank and develop a new, multifunctional digital wallet for customers.
Labuan made the news earlier this year as one of the best places in Malaysia for the development of blockchain-based startups. It is a free trade zone that in the past year has become an increasingly popular spot for offshore investment opportunities.
The developments show ongoing optimism in cryptocurrency and blockchain technology at a time when the market is suffering from over 12 months of steadily decreasing value.