N2N to venture into digital asset exchange business

PETALING JAYA: ACE Market-listed N2N Connect Bhd and its substantial shareholder SBI Holdings, Inc are looking to jointly establish and operate a digital asset exchange in the Asia region.

In a filing with Bursa , N2N said it has entered into a memorandum of understanding (MoU) with SBI to set out the general understanding of the two parties’ intended engagement in a .

The two parties have agreed to form a holding company to cover formation of digital exchanges for all Asia Pacific countries (other than Japan) that will result in both parties holding equal shareholding in each digital exchange.

N2N and SBI will contribute their respective expertise and resources towards the success of the joint venture. The MoU would also enable N2N to invest in SBI’s subsidiary, DigitAEx Limited (Global Max), and SBI to invest in N2N’s subsidiary, Asianext Sdn Bhd.

“N2N and SBI will create a team to agree on the details of the joint venture and enter into definitive agreements,” it said.

SBI is a substantial shareholder of N2N, holding 20.36% shares in the company. It is the holding company of internet financial institutions in Japan, including online securities broker, online retail bank, online retail company, online retail virtual currencies exchange, proprietary trading system operator and margin trading company.

It operates Global Max as the legal entity to be the operator of digital asset exchange for clients in the Asia Pacific region, other than Japan. Global Max is currently in the midst of obtaining a license to engage such business in Hong Kong.

Meanwhile, N2N is principally involved in the research and development of software packages and provision of design, programming and consultancy services and related activities.

It operates Asianext as the legal entity to be the operator of digital asset exchange for clients in Asia Pacific. It is in the midst of applying for a license to engage in such business in Malaysia and has plans to obtain license to engage in such business in other Asia Pacific countries.

N2N’s rose 0.56% to close at 90.5 sen today with 373,800 shares traded.

Source: The Sun Daily

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