VCPlus enters deal to license HydraX’s digital asset custody technology

Singapore five-dollar note Photo by Leslie Shaffer

VCPlus has entered a deal with HydraX to license its digital asset custody technology for digital-asset tokens and related services, with part of the payment for the licensing fees to be made via a stake in VCPlus, the Catalist-listed company said in a filing to SGX Thursday.

HydraX, a Singapore-based fintech company, provides regulatory-compliant, blockchain capital markets infrastructure services to institutional clients, the filing said. It technology supports interoperability between traditional and digital assets, and it is tailored for use by exchanges, banks, brokers and other financial institutions, the filing said.

The license grants VCPlus non-exclusive, non-transferable and non-sublicensable use of the digital asset custody technology on a white label basis for Ethereum-based digital tokens and related services, the filing said. The license has also been granted to VCPlus’s joint venture Custody Plus, the filing said.

The S$600,000 consideration for the license agreement will partly be paid by the issuance of 11.11 million new VCPlus shares, or an around 0.51 percent of existing shares, at S$0.027 each, for a total of around S$300,000, while the remainder will be paid either in a second tranche of shares or in cash, the filing said.

The issue price is a premium of around 12.03 percent of the volume weighted average price of S$0.0241 for VCPlus’s shares on Thursday, the filing said.

“The partnership with Hydra X is yet another step forward in VCPlus’ diversification into fintech and we welcome HydraX as a shareholder in VCPlus. It is a vote of confidence in VCPlus’ vision to be a leading player in the fintech and digital assets ecosystem. We believe that the digital assets industry here will continue to progress and grow,” Clarence Chong Heng Loon, CEO of VCPlus, said in the statement.

In May, VCPlus had announced a deal with CapitalX Global and several investors to incorporate joint venture company Custody Plus to provide custody services for Singapore’s digital assets industry.

VCPlus has two businesses: Its legacy granite dimension stone segment, which operates two quarries in Malaysia, and its newer fintech business.