Hatten Land unit to develop token system in Melaka to create digital assets

KUALA LUMPUR (Oct 7): Singapore Exchange (SGX) Catalist-listed Hatten Land’s subsidiary Hatten Technology (S) Pte Ltd has inked a deal with Prakal Pte Ltd (also known as Enjinstarter) to develop a token system and create digital assets to promote the digital economy in Melaka.

In a statement Thursday, the Hatten group said the digital assets, which include non-fungible tokens (NFTs), can be exchanged for or connected with the current loyalty point system of its malls and hotels, as well as of other participating hotels, attractions, malls and shops.

The token strategy will be developed by Enjinstarter, the property developer said.

This project will start in mid-October with delivery of the token system, crypto-related elements and components connected to the metaverse due by the end of March 2022.

“The initial term of the exclusive framework agreement is two years and can be automatically renewed every two years unless the agreement is terminated," Hatten Land said.

It said Enjinstarter is a special purpose vehicle set up to serve as a launch pad for the ecosystem development within the Enjin platform which powers many pioneering blockchain games, applications and projects.

"Also a marketplace for NFTs, Enjin has over 20 million users spanning more than 250,000 gaming communities. Enjin has backed over US$1.14 billion (about RM4.77 billion) blockchain assets, which collectively contain 12.5 million worth of ENJ coins,” Hatten Land said, which says it owns and operates retail malls with a combined built-up area of over six million square feet within Melaka, where it also owns or operates four hotels.

Under the agreement, Hatten Technology and Enjinstarter intend to develop a metaverse, starting with a digital "twin city" for Melaka (Digital Melaka), which aims to promote physical and digital tourism in Melaka and accelerate the growth of the city's digital economy.

In addition, Enjinstarter is said to establish its regional headquarters in Melaka, both physically and digitally, to jointly operate a virtual game development incubator, a blockchain gaming showcase and arcade.

Enjinstarter will also cultivate and promote Melaka artistic activities such as partnering with local artists for NFT creations, marketing and sales within Digital Melaka.

“The Enjinstarter collaboration follows recent agreements signed by Hatten Land under which at least two parties will instal and operate up to 3,000 cryptocurrency mining (cryptomining) rigs within [our] properties in Melaka.

"Hatten Land will leverage its existing infrastructure and lower energy costs in Malaysia. Such costs may be lowered further as Hatten Land instals solar panels on the rooftops of the malls to enable energy-efficient or 'green' cryptomining, accelerating its initiatives to create sustainable digital assets,” the developer said. 

"The Digital Melaka project is intended to be a major catalyst of our strategic shift to become a hub for blockchain and digital initiatives as we repurpose our existing mall footprint in Melaka,” Hatten Land executive chairman and managing director Datuk Colin Tan said.

Hatten Land on Sept 29 signed an agreement with Frontier Digital Asset Management Pte Ltd to jointly operate at least 1,000 cryptocurrency mining (cryptomining) rigs within the group’s properties in Malaysia.

The company said cryptomining rigs will be installed starting from the fourth quarter of the year (4Q21) in phases under the strategic collaboration and management agreement between Hatten Technology and Singapore-based Frontier, which currently operates over 700 cryptomining rigs in Singapore.

This came after Hatten Land’s recent announcement of repurposing its retail malls in Melaka for digital activities such as cryptomining and e-commerce, with these activities leveraging existing infrastructure and lower energy costs in Malaysia. 

As at 11am, shares in Hatten Land were trading at 6.8 cents to value the company at S$107.4 million (about RM330.56 million).

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