Zetrix AI launches AI agent identity service as it seeks to commercialize development investments

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Zetrix AI launches digital identities

Highlights

Zetrix AI launches Know Your Agent (KYA), a service providing digital identities for AI agents, and plans cross-border testing with CAICT.
Wong Thean Soon's stake fell to 1.84% from nearly 30% since August, breaching the terms of the RM2 billion wakalah sukuk programme and prompting MARC Ratings to downgrade it to C.
Zetrix AI faces liquidity pressure and a government civil suit against MyEG Sdn Bhd involving an additional RM353.13 million in taxes, and withdrew its FY2026 interim dividend to save about RM20 million.

This article was translated from the original. Read the original version by our correspondent here.

KYA launch and cross-border testing plans

As reported by The Edge Malaysia, citing a statement by Zetrix AI that was also filed with Bursa Malaysia, the Know Your Agent service, or KYA, introduces a framework that gives verifiable digital identities to AI agents linked to individuals or organizations. This enables businesses, governments and digital service providers to verify whom an agent represents and which activities it is authorized to perform.

The service also allows owners to set specific permissions, including access to services and information, transaction limits and spending authority, while maintaining records of agent activity for accountability. Zetrix AI group managing director Wong Thean Soon said that the growing autonomy of AI must be accompanied by greater accountability, so that every agent can be identified, every permission verified and every action traced to a responsible owner.

KYA is built on the World Wide Web Consortium's Verifiable Credentials framework and incorporates AvatarLabs' proprietary Agentic Wallet technology to manage digital credentials and verify delegated permissions. Zetrix AI and CAICT also plan cross-border testing involving organizations from China, ASEAN, the Middle East and Africa to assess whether AI agent identities and permissions can be recognized across different jurisdictions.

According to the statement, findings from the cross-border tests are also planned to be submitted to the International Telecommunication Union, or ITU, to support the development of international standards for AI identity verification, permissions and accountability.

Financial pressure, ratings and legal challenges

The launch comes as the company faces mounting financial and legal pressure following a sharp decline in its share price and the forced sale of shares pledged by Wong. As of Oct. 21, Wong's stake in the company had fallen to 1.84% from nearly 30% in August, triggering a breach of the terms of the group's RM2 billion wakalah sukuk programme, which requires him to remain its largest single shareholder.

Zetrix AI said it was not required to make an immediate repayment on the RM2.16 billion sukuk and that all payments to date remained current, with the next payment of RM214 million due in March 2027. MARC Ratings downgraded the sukuk programme to C on Oct. 30, signaling a high likelihood of default, after the company failed to remedy the breach or obtain a waiver from sukukholders.

The rating agency also flagged liquidity pressure, uncertainty over funding sources and weaknesses in corporate governance. Separately, Zetrix AI faces claims involving RM314 million in collections not remitted to the Road Transport Department (JPJ), while the government has filed a civil suit against its wholly owned subsidiary, MyEG Sdn Bhd, seeking an additional RM353.13 million in taxes.

Transport Minister Anthony Loke Siew Fook also said the government would sue to recover money owed to JPJ. On Oct. 19, Zetrix AI withdrew its planned FY2026 interim dividend of 0.25 sen per share to preserve working capital amid unexpected operating expenses, saving about RM20 million, while its cash stood at RM541.6 million as of June 30, 2026. Zetrix AI shares were unchanged at six sen at midday on Thursday, giving the group a market capitalization of RM484.7 million.

Zetrix AI and MyEG's suspension as JPJ collection agents was the focus of our earlier report, following the failure to remit more than RM200 million in payments collected since May 2023. We also examined how the loss of this revenue stream adds pressure to the cash position and increases risks around the RM2 billion sukuk, including the implications of Wong Thean Soon's reduced stake for compliance with the bond covenants.

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