Quick takes: Singapore blockchain plays to watch on SGX

IN December last year, a Singaporean returning from Japan successfully cleared the immigration counters at Changi Airport using a blockchain-enabled digital travel pass to present a negative Covid-19 test result. This was the first-ever use of a digital health passport, and an indication that blockchain technology has potential benefits in future.

Popular trends such as blockchain technology, non-fungible tokens (NFT) and cryptocurrency have been making waves in recent times. This has prompted some public-listed entities to enter the field. Some are linking up with the relevant technology players to extract value for both their companies and shareholders.

Here are 9 of the most recent Singapore Exchange-listed (SGX-listed) entities to join the value-creation fray.

Joyas: E9L  : E9L 0%Catalist-listed Joyas International Holdings plans to enter the NFT market through a tie-up with a company that already deals in NFTs and cryptocurrency. Joyas’ wholly owned subsidiary will hold 60 per cent of a new company that digitises artwork as NFTs with blockchain technology, through a joint cooperation agreement with partner Splendid Powerful.

Intraco: I06  The mainboard-listed trading company has entered into a binding heads of agreement with Australian entrepreneurs Mark Carnegie and Sergei Sergienko to invest in digital asset platform MHC Digital Co (MHC Singapore). Under the agreement, Intraco will pay S$10 million in cash and issue 100 million new shares in the company at an issue price of S$0.50 per share for a 51 per cent interest in MHC Singapore. The newly incorporated MHC Singapore will take over the relevant operations and assets of Australian digital asset platform MHC Digital Group, which is primarily involved in the fund management of a portfolio of digital assets as well as trading of digital assets.

HGH Holdings: 5GZ  The Catalist-listed concrete manufacturer entered into a non-binding memorandum of understanding (MOU) with AAEX to explore developing a potential blockchain platform. The platform will integrate computing power services, financial services, circulation services and information services. Some activities of AAEX, together with its affiliated and associate companies, include cryptocurrency mining, centralised and decentralised cryptocurrency and payments businesses, integrated e-wallets, super apps and e-commerce mega malls. HGH said that the proposed collaboration is part of the group's corporate strategy to diversify returns and achieve long-term growth.

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HGH Holdings announced on Jan 21, 2022, that the MOU with AAEX was terminated. 

Hatten Land: PH0 In September 2021, shares of the property developer had surged after it announced plans to pivot towards digital and blockchain activities. The company had signed a definitive agreement with Singapore's Frontier Digital Asset Management to share proceeds from jointly operating at least 1,000 cryptocurrency mining rigs. Later on Oct 7, Hatten Land signed an agreement with Prakal - known as EnjinStarter - to develop a token system that helps promote a digital economy in Melaka, Malaysia. Under the agreement, both parties plan to create a metaverse, starting with a digital twin city for Melaka called Digital Melaka. The project was due to start in mid-October 2021, and the delivery of the token system and connected crypto-related elements and components will be due by March 202H0 In September 2021, shares of the property developer had surged after it announced plans to pivot towards digital and blockchain activities. The company had signed a definitive agreement with Singapore's Frontier Digital Asset Management to share proceeds from jointly operating at least 1,000 cryptocurrency mining rigs. Later on Oct 7, Hatten Land signed an agreement with Prakal - known as EnjinStarter - to develop a token system that helps promote a digital economy in Melaka, Malaysia. Under the agreement, both parties plan to create a metaverse, starting with a digital twin city for Melaka called Digital Melaka. The project was due to start in mid-October 2021, and the delivery of the token system and connected crypto-related elements and components will be due by March 2022.

VCPlus: 43E The Catalist-listed gold miner acquired technology consultancy firm Apec Solutions for S$5 million on Oct 15, 2021, in a bid to further its fintech ambition. Apec Solutions' business includes blockchain and fintech solutions development, enterprise software solutions, e-commerce and digital marketing services. The company also advises companies on licensing and grant requirements and applications in Singapore. This comes as a strategic move by VCPlus to secure and tap the expertise, resources and network of Apec Solutions to accelerate its business growth in the technology consulting spac3E The Catalist-listed gold miner acquired technology consultancy firm Apec Solutions for S$5 million on Oct 15, 2021, in a bid to further its fintech ambition. Apec Solutions' business includes blockchain and fintech solutions development, enterprise software solutions, e-commerce and digital marketing services. The company also advises companies on licensing and grant requirements and applications in Singapore. This comes as a strategic move by VCPlus to secure and tap the expertise, resources and network of Apec Solutions to accelerate its business growth in the technology consulting space.

Vividthree: OMK The Catalist-listed virtual reality, visual effects and computer-generated imagery production studio saw heavy trading on Oct 27, 2021, after the company said it is exploring opportunities in the gaming sector to increase future revenue streams. Noting that blockchain games have seen a surge in popularity partly due to the Covid-19 pandemic, Vividthree had commenced preliminary discussions with several parties to capitalise on popular trends such as blockchain and NFT in the gaming sectoMK The Catalist-listed virtual reality, visual effects and computer-generated imagery production studio saw heavy trading on Oct 27, 2021, after the company said it is exploring opportunities in the gaming sector to increase future revenue streams. Noting that blockchain games have seen a surge in popularity partly due to the Covid-19 pandemic, Vividthree had commenced preliminary discussions with several parties to capitalise on popular trends such as blockchain and NFT in the gaming sector.

Separately, in a more recent update on Nov 8, the group reported that its net loss widened to S$1.8 million for the 6 months ended Sep 30, 2021, from S$1.5 million a year ago. This is despite the increase in revenue by 297.5 per cent to S$1.2 million in the same period, from S$299,816 the year before. The group said that it is cautiously optimistic about its recovery, especially in the post-production segment.

OIO Holdings: KUXThe Catalist-listed group in 2020 changed its name from DLF Holdings to OIO Holdings to highlight its new focus on blockchain. The group, which focused its core business on the provision of mechanical and electrical services and solutions, announced its intentions to expand into blockchain agency and related businesses. The company on Mar 31 acquired Moonstake for S$7.1 million. The founder of Moonstake, Mitsuru Tezuka, is a Japanese national who has years of experience in the blockchain industry mainly in Singapore and Japan. 

Addvalue Technologies: A31 : A31 0%The mainboard-listed company together with Alba Orbital on Dec 10, 2020 received £440,000 (S$803,529) in funding from Eureka, in partnership with Enterprise Singapore and Innovate UK. Awarded under the Eureka Globalstars-Singapore Call, the companies will jointly develop a decentralised satellite infrastructure that powers a blockchain payload at its core to enable direct tasking of a satellite in real time.

Alset International: 40V : 40V 0%The Catalist-listed property investment and development company formerly known as Singapore eDevelopment, through its investment arm SeD Capital, entered into a joint venture agreement with digital asset management firm Novum Alpha. Novum Alpha is based in Singapore, and specialises in trading cryptocurrencies with a regional footprint in Malaysia, Vietnam, Indonesia and Thailand. SeD Capital now owns 50 per cent of the issued and paid-up capital in the joint venture company, Credas Capital. Credas intends to launch algorithmically managed, cryptocurrency tracker products that will provide investors broad-based exposure to an automatically rebalanced portfolio of liquid cryptocurrencies, through an actively managed cryptocurrency exchange-traded product. 

Separately, the company on Mar 21 announced that it will enter the crypto mining business by establishing a new subsidiary, Alset Mining. Alset Mining plans to acquire mining rigs in the year ahead. 

SMI Vantage: Y45 The mainboard-listed investment and management company signed a memorandum of understanding with Nasdaq-listed substantial shareholder The9 Limited to explore developing a NFT publishing business. It expects to finalise the plans "within the next few weeks". The company intends to seek digital content for publication and sale across several NFT platforms. Contributors will submit their digital assets to SMI Vantage, which will then serve as publisher and sign agreements with selected contributors to handle the auctioning and trading of the completed work on NFT platforms.

AMTD International: HKB The dual-listed investment banking firm is looking to acquire a majority stake in AMTD Digital - a digital solutions platform. The proposed acquisition will allow AMTD International to have digital ecosystems comprising members and alliance partners who work closely or in partnership with AMTD Group to enter into the metaverse to deliver their offerings. 

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