As per reports, Singapore based cryptocurrency exchange, CGCX.io in collaboration with two other organizations, Archipelago Group, and IBH Capital, is set to launch the first ever physical blockchain bank in Labuan, Malaysia’s federal territory. Archipelago is an insurance group which supports Blockchain and cryptocurrency operations while IBH Capital, on the other hand, is an investment bank which is said to have a global affiliation in excess of $1 billion.
The bank will be handling financial investments related to the Blockchain, cryptocurrency, and other digital banking services. The main aim of the bank will be to bridge the gap between the traditional banking sector and the crypto world. The bank will facilitate the expansion of business of all the companies involved with crypto and provide banking services in a way that is effective and timely.
CGCX.io, which according to reports have attained a daily trading volume of 10 million USD, is to the main funder of the project. They were also successful in raising about $32.5 million during their Initial Coin Offering (ICO). The exchange will also create a secure digital wallet for the investment bank and release $100 million worth of STO to ensure that the bank is well funded from its inception.
A memorandum of understanding has been signed by the three organizations, to ensure that the alliance has proper sanctions and is backed by the law. With the hopes that the bank will be established in another year, the terms of the MoU is binding for a year,
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. The collaborators have also sought the support of the other companies who have the possibility of being interested in the project.
Malaysia has been the hub of blockchain development. In November, the country officially started using Blockchain to aid in the traceability of degree certificates, due to the extremely high levels of fake degrees that are in circulation, the process of verifying which is extremely cumbersome.