1st June 2021 - 3 min read
Chinese state-owned Asia Pacific Investment Bank (APIB) has officially launched its new digital investment banking arm, Asia Digital Bank Ltd (ADB) in Malaysia. The newly launched entity aims to become the world’s leading digital asset operator by tapping into advanced digital financial technology to achieve its goals.
ADB is a digital investment bank with self-financial servicing platform that is powered by blockchain technologies. It seeks to serve corporate clients globally by providing compliant and quality digital asset management and trading services, on top of promoting the development of an ecosystem suited for global asset digitalisation.
With regard to its legitimacy to operate within the country, ADB received its digital banking licence for investment banks from the Labuan Financial Services Authority (LFSA) in November 2020 – the first such licence to be awarded by the LFSA. Accordingly, the chief executive officer of ADB, Chris Wang assured that the bank will abide by the Labuan Financial Services and Securities Act 20100 (Act 704) as it works to innovate digital finance products and business processes. Additionally, it will adhere to all other compliance and risk control standard requirements.
Wang also explained that ADB uses an advanced blockchain technology platform with Big Data, cloud computing, artificial intelligence (AI), and other technologies to spur the development of the digital investment banking business. Its unique blockchain design (consisting of consortium blockchain and public blockchain) will also provide various other benefits, including separating the digital asset investment and financial services from brokerage business, promoting self-financing management, as well as reducing corporate financing costs.
Wang added that ADB will continue to contribute to the development and wellbeing of communities in both Malaysia and China, as well as the global digital economy. “ADB will make use of its platform to serve the global market and worldwide clients by providing core services such as cross-border investment and financing capabilities, digital asset management, as well as cross-border structured trade financing,” he said.
Meanwhile, the deputy director-general of LFSA, Datuk Iskandar Mohd Nuli said that the launch of ADB will encourage and promote the innovation of Malaysia’s digital finance industry. He said that LFSA has been striving to develop Labuan as a competitive and high value-added global financial service hub, and hoped that more financial institutions like ADB will participate in the development of a financial hub in Labuan, as well as in Malaysia.
For context, APIB was established by Asia Pacific Wenjing Financial Group Ltd in 2015, and is registered in Labuan. Meanwhile, Asia Pacific Wenjing Financial Group Ltd is itself a subsidiary of China’s Nanjing Investment Group Co Ltd, and was founded in Malaysia to provide international financial services for countries that are involved in the Belt and Road Initiative.
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