Kapital DX, touted as the first initial exchange offering platform in Malaysia, has launched its inaugural product: a tokenized primary offering of a Shariah compliant fixed income product issued by a local healthcare solutions company.

The offering by Integra Healthcare Technology, which is a program named i-INT Programme worth a total of RM150 million (US$31.55 million), carries a tenor of five years and a profit rate of up to 10% per annum.

Tranche 1 of the program, which amounts to RM29 million (US$6.1 million), has been fully subscribed through institutional participation, while Tranche 2 is currently open for subscriptions.

Integra, which specializes in developing and managing specialist rehabilitation and healthcare centers, is raising funds to set up four new rehabilitation centers.

Kapital DX’s platform helps private companies raise funds through the issuance of security tokens, enabling fractional ownership of various assets through blockchain technology and making private market investments accessible to a wider audience.

“This strategic move is designed to bridge the funding gap for growth to late-stage companies, facilitate project financing and expand the range of available asset classes through tokenization,” a press release read.

Registered and regulated by the Securities Commission Malaysia, Kapital DX, which officially launched in 2023, is one of only two initial exchange offering platforms licensed by the regulator. The other registered entity is equity crowdfunding platform pitchIN, which also runs a token crowdfunding platform.

In September 2023, Malaysia Debt Ventures, a subsidiary of the Minister of Finance (Incorporated), invested in Kapital DX, and announced plans to raise funds on the Kapital DX platform to establish the first venture debt fund listed on an initial exchange offering platform.

A precious metals mining and blockchain development company has secured the greenlight to list its gold-backed Shariah compliant security token on Green-X, marking its expansion into the Asian and Middle Eastern markets.

The token, DIGau, is issued by Dignity Gold based in New York, and offers investors exposure to the US precious metals mining and mineral sectors. The token is backed by a minimum of US$6 billion in Dignity gold reserves and has been certified Shariah compliant by a scholar.

“We are excited to receive the pronouncement of Shariah compliance and Green-X listing. This is an important step in broadening the market for DIGau tokens especially in Asia and the Middle East,” shared David Weild IV, the chairman of Dignity Gold’s board.

The initial DIGau tokens were issued under exemption from the registration requirements of the Securities Act provided by Rule 506(c) of Regulation D and Regulation S under the Securities Act. They are “restricted securities” as defined in Rule 144 under the Securities Act.

DIGau was listed on CoinMarketCap last July and as at the 3^rd April 2024 was trading at US$2.03.

The listing of this gold security token on Green-X, a Labuan-licensed Shariah compliant ESG digital asset exchange, confirms an earlier report by IFN, the sister publication of IFN Fintech. It expands Green-X growing portfolio of real-world asset (RWA) and security tokens. The exchange earlier listed Tai Shan Digital, which represents interest in Chinese antique ceramics from Tang to Qing Dynasty.

Philip Tam, the CEO of Green-X, confirmed that it is also working on tokenizing sapphire gemstones and rare earth elements. It is currently in talks with blockchain partners in Korea to bring RWAs to the decentralized finance space to unlock liquidity and trading possibilities.

Digital asset exchange Fasset has finally launched its app in the UAE five months after it secured Dubai’s first Virtual Asset Service Provider (VASP) license.

The release of the app in the UAE follows its launch in Indonesia last year.

With the VASP license, granted by the Virtual Asset Regulatory Authority, Fasset is permitted to carry out virtual asset brokerage services out of Dubai for retail and institutional customers globally. Its platform facilitates the buying, selling and swapping of digital and tokenized real-world assets in the user’s preferred currencies including cryptocurrencies, stablecoins as well as bundles.

“UAE is experiencing a surge in digital asset investment as the government promotes innovation and entrepreneurship in the country,” observed Fasset CEO Mohammad Raafi Hossain. “Our goal is to empower people to have universal access to financial services, so they have more opportunities to build and manage their wealth.”

Backed by Liberty City Ventures, Fasset – which has raised US$26.7 million in funding – intends to offer other asset classes including tokenized real estate and Sukuk. It is understood that the platform has ambitions to expand its service offerings to include financing and remittance.

Fasset last year established a Shariah spin-off, Fasset Islamic, a Halal investing app offering exposure to Halal digital assets and real-world assets such as gold. It intends to include Halal staking and Shariah compliant stocks into its portfolio.

Regional expansion and beyond

Fasset now has a firm foothold in the UAE and Indonesia and plans to use these two markets as gateways into the respective regions.

So far, the Indonesian operation seems to be on a positive trajectory. In the first week of its launch in the world’s most populous Muslim country, the app generated a waitlist of over a million. It has also partnered with telco provider Indosat Ooredoo Hutchison to launch an embedded digital asset exchange in its app, making it available to over 100 million users in Indonesia. Fasset has also collaborated with Mastercard to offer a crypto card in the Southeast Asian nation.

IFN Fintech has learned that Canadian tokenization platform Al Mabrook Financial is in the “final stages” of securing a license in El Savador, just as it gained Shariah approval for its business model.

Launched in November 2022, the Halal tokenization platform had sought to secure an exempt market dealer license from the Canadian securities regulator as part of its growth strategy to bring Muslim-friendly blockchain-based funding and investment solutions to the North American market as we reported last year.

However, regulatory stumbling blocks and a protracted process, largely due to the absence of dedicated enabling policies according to CEO Fahad Siddiqui, and an invitation by the El Salvadoran authorities, have instead led the Ontarian firm to apply for a license in the Central American nation.

“As Mabrook approaches the final stages of securing its license, the platform is undergoing rigorous smart contract and cyber security certifications, set to be completed in the coming month,” confirmed Fahad. Mabrook’s internal Shariah board, led by Mufti Ismail Desai, recently issued a Fatwa approving the platform’s model.

El Savador has been a strong advocate for cryptocurrencies and tokenization, embracing the new technology with welcoming regulations and policies. In 2021, it became the first country in the world to recognize bitcoin as a legal tender.

While the El Salvadoran license application is ongoing, Mabrook is not giving up its goal of serving the Canadian market.

Fahad told IFN Fintech that the company is working toward setting up a joint venture or partnership with an existing securities company in Canada to be able to provide its service in the market, which is currently without any dedicated digital asset regulations nor regulator.

The start-up is also on the hunt for new partners. It recently partnered with MRHB Network to offer the latter’s 300,000 Sahal Wallet users access to invest in fractional real estate and other Shariah compliant businesses in Canada.

According to its roadmap, Mabrook intends to offer a security token, followed by commencing a Mudarabah-based staking and vesting app, completing a minimum viable product of the platform and launching the first project to co-invest with the community.