Its chief executive officer Desmond Lee announced the company would provide funding and knowledge sharing as part of its efforts to nurture local game makers that are developing blockchain-powered games.
On the other side of the partnership, MDEC would help iCandy recruit game studios keen to venture into the niche space.
The two organisations signed a memorandum of understanding (MoU) on the partnership during the Level Up KL 2018 conference here.
As a proof of concept for blockchain-powered games, iCandy Interactive launched CryptantCrab, a game where players can collect, mutate, battle and trade digital crustaceans.
Lee says using blockchain provides an extra layer of security against theft, cheating and unauthorised editing of the game's data.
Users will also be able to use the Etherium cryptocurrency to buy and sell in-game items.
The game is currently on pre-sale, with plans to launch a player-versus-player battle system in the first quarter of 2019.