VCIG Buys $100M in OOB Tokens, Tether Becomes Top Shareholder

The deal represents a significant milestone for the cryptocurrency industry, as a publicly-traded company on the Nasdaq exchange makes a substantial, direct investment into a digital asset ecosystem. VCI Global’s commitment to acquire $100 million in OOB tokens underscores a growing trend of traditional finance (TradFi) entities seeking exposure to the crypto sector. The arrangement is structured in two distinct phases, beginning with an initial purchase of $50 million in OOB tokens directly from the OOB Foundation. This transaction was executed at a valuation of $200 million for the OOB token project, translating to a price of $0.20 per token.

Notably, the payment for this initial tranche was not made in cash but through the issuance of VCI Global’s own company shares. This equity-for-tokens swap is a sophisticated financial maneuver that directly links the fortunes of the public company with the success of the OOB token. The company has further committed to purchasing an additional $50 million worth of OOB tokens on the open market following the token’s official launch, demonstrating a long-term, phased investment strategy intended to minimize market impact and secure a strategic position in the asset.

A central and transformative outcome of this deal is the reshuffling of VCI Global’s ownership structure. Through its existing stake in OOBIT, Tether, the issuer of the world’s largest stablecoin USDT, will become the largest shareholder in the Nasdaq-listed VCI Global. This development is profound, as it places one of the most influential entities in the cryptocurrency space at the helm of a publicly-traded company, blurring the lines between the digital and traditional financial worlds.

The investment consortium backing OOBIT reads as a who’s who of crypto venture capital and innovation. Alongside Tether, the platform is backed by Anatoly Yakovenko, the co-founder of the high-performance blockchain Solana (SOL). The involvement of Yakovenko provides a strong technological endorsement from one of the ecosystem’s leading architects. Furthermore, the deal includes support from established venture firms CMCC Global and 468 Capital, adding layers of financial and strategic credibility to the OOBIT project and, by extension, VCI Global’s investment.

At the heart of this transaction is OOBIT, a Singapore-based crypto payments platform that was launched in 2017. The company operates in the competitive crypto payments sector, aiming to facilitate the use of digital assets for everyday transactions. VCI Global’s role will extend beyond being a major token holder; the company has also been tasked with overseeing OOBIT’s entire digital treasury.

This treasury management responsibility is a critical component of the partnership. It involves the strategic handling of OOBIT’s digital asset reserves, which likely includes the OOB tokens themselves and potentially other cryptocurrencies. For a payments company, efficient treasury management is vital for liquidity, operational stability, and strategic initiatives like token buybacks or ecosystem grants. By entrusting this function to a Nasdaq-listed entity, OOBIT gains a partner with stringent regulatory compliance and corporate governance standards, potentially enhancing trust and operational rigor within its ecosystem.