KUALA LUMPUR: N2N CONNECT BHD gained almost 4% in active trade this morning after signing a memorandum of understanding (MoU) to set up digital asset exchange business.
The software company rose 3.87%, or 3.5 sen to 94 sen with 3.5 million shares traded. N2N-WB jumped 14.29%, or 3.5 sen to 28 sen with 235,500 shares done.
N2N Connect 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.
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.
AmInvestment Bank research has maintained its buy call on N2N at an unchanged fair value of RM1.18.
"The blockchain-enabled trading platform works by digitalising the trading of multiple financial instrument in one venue, including equities, derivatives, currencies etc. We believe this would potentially revolutionise the current trading practices," AmInvestment said.
It added that the platform will allow for instantaneous tracing of asset ownership rather than the T+3 settlement method under the current system.
The research house said the initaitive is aimed at expanding N2N's regional footprint and expedite the setting up of an Asia Trading Hub that allows cross-border trades.