Monday 27 May 2024
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KUALA LUMPUR (Nov 10): CoKeeps is the first entity to be approved by the Securities Commission Malaysia (SC) to offer its digital asset custodian services to the market, said its co-founder and chief executive officer Suhanna Hussein. 

The firm’s unique value proposition is its core proprietary technology that underpins its solution, known as CoKeeps Wallet, she said. 

“CoKeeps Wallet is an institutional-grade digital asset management tool utilising decentralised security and multi-party computation technology that is able to remove single points of failure, a challenge commonly found in storing crypto. 

“Its features also include cold wallets and hot wallets with API (application programming interface) access and smart contract solutions,” she said.  

Suhanna said CoKeeps’ security features are unique, as its infrastructure is “built against both external and internal threats”. 

She added that the firm is currently engaging with other regulated entities in the capital market on digital asset custodian services. They include digital asset exchanges and initial exchange offering platform operators. 

“Furthermore, fund managers and various financial institutions are incorporating digital asset classes to broaden their offerings. This expansion necessitates ready-made solutions, such as ours, to ensure compliance.” 

Despite negative headlines surrounding the digital asset industry last year due to the collapse of cryptocurrency exchange FTX, global funds continued to flow into digital assets, said Suhanna. 

In fact, some international financial institutions, such as Franklin Templeton and BlackRock, are doubling down on investments in digital assets, with plans to launch bitcoin exchange-traded funds.

All this means investors and financial institutions will need to better understand the inherent risk associated with digital assets, and the required technical capabilities beyond the scope of traditional custodial services to fully secure them, said Suhanna. 

“After three years of hard work building a robust DAC (digital asset custodian) solution with the guidance of the SC, we are honoured to be the first company approved to operate under the SC’s Guidelines on Digital Assets. 

“The SC is at the forefront of global regulators in developing a methodical approach to regulating digital assets, and its guidelines provide a clear road map for the safe and responsible development of this asset class. 

“We are committed to working closely with the SC to ensure that our DAC solution meets the highest regulatory standard, and we are excited to play a leading role in the development of the digital asset ecosystem in Malaysia,” she said.

Edited ByKwang Zhe Kuek Ser
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