KUALA LUMPUR (March 6): Software company N2N Connect Bhd has inked a partnership with its substantial shareholder as part of its plan to venture into the digital asset exchange business across the Asia Pacific region.

The group signed a Memorandum of Understanding (MoU) with 20.36%-owned SBI Holdings Inc today, it said in a statement.

The parties will jointly operate a company that will become a holding company of operators of digital asset exchange for clients in the Asia Pacific region. Both parties will hold equal shareholding in each digital exchange.

SBI has incorporated DigitAEx Ltd (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 pursing a licence to engage such business in Hong Kong, said N2N.

N2N meanwhile has incorporated Asianext Sdn Bhd (Asianext) as the legal entity to be the operator of digital asset exchange for clients in the Asia Pacific region.

Asianext is currently applying for a licence to engage in such business in Malaysia, and has plans to obtain licences to engage in such business in other Asia Pacific countries.

Under the MoU, the parties will contribute each of their expertise and resources to the holding company.

They will also enable both parties to invest in their respective unit, namely N2N to invest in Global Max, and SBI to invest in Asianext.

N2N’s share price closed 0.5 sen or 0.56% higher at 90.5 sen, for a market capitalisation of RM507.13 million.