This note is about tokenization and tokenized assets. Tokenization refers to the process of creating a representation of a particular asset on a blockchain via digital tokens. Tokenized assets typically derive their value from the value of the underlying asset. This note explores the benefits and risks of tokenization, as well as use cases. Moreover, it explores Security Token Offerings, considerations for tokenized asset issuers, and the Howey Test. It concludes with a consideration of how possible future trends may affect tokenization.

For NUS Business School: (Faculty only)
To obtain a free copy of the case, please contact Ms Kwok Siew Geok (bizksg@nus.edu.sg)

Contrary to the typical practice of cutting operating expenses by compromising on employees’ benefits, the chairman of Zentaku Kogyo Company Ltd. (Zentaku), David Wu Chongrang, aimed to improve the standard of living of his staff by steadily raising their salaries and benefits. In fact, the key performance indicator David had set for himself was to raise his employees’ salaries regularly to a preset target benchmark. Contrary to conventional approaches, over the past sixteen years (2006–2022) David had reduced Zentaku’s revenue by 28 per cent and the number of employees by two-thirds, while raising the annual gross profit per employee to 239 per cent. Zentaku had achieved more with less by transforming itself through the rigorous implementation of lean production, inspired by the famed Toyota Production System, but Zentaku’s future leadership now faced challenges in sustaining the success Zentaku had achieved. Were the management methods adopted in the past applicable to the younger generation of workers? How could the current management pass the enterprise to the younger generation while ensuring employees remained fulfilled in the workplace?

For NUS Business School: (Faculty only)
To obtain a free copy of the case, please contact Ms Kwok Siew Geok (bizksg@nus.edu.sg)

Green Consultant, a Singapore-based environmental consulting firm, had worked with several financial institutions before 2023 and was aware that many were interested in expanding their loan portfolios to include more environmentally inclined clients. In January 2023, one such client, a Singapore-based small and medium enterprise (SME) named Chang & Lee Manufacturing (CLM), approached Green Consultant to prepare a business proposal on how the SME could transition to solar energy. A green finance analyst at Green Consultant had one month to deliver a proposal to CLM. He had to consider the type of solar business model, the financing option, and the CLM stakeholders to engage, alongside CLM’s operational and financial conditions, to recommend the most economically feasible solar solution for CLM.

For NUS Business School: (Faculty only)
To obtain a free copy of the case, please contact Ms Kwok Siew Geok (bizksg@nus.edu.sg)

In June 2023, Zerodha, a leading player in India’s discount brokerage industry, was at a crossroads. Founded in 2010 by Nikhil and Nithin Kamath, who were avid stock traders from a young age, the company had grown significantly by putting customers first. The pandemic and low-interest environment had provided a strong tailwind to the sector as well as the company, especially in terms of the number of customers and revenues. However, the competition was nipping at Zerodha’s heels. Many start-ups offered similar technology interfaces, and some were funded by venture capital. A few were spending aggressively to court customers as well as tech employees. With a debt-free balance sheet built through several years of profitable operations, Zerodha could pursue strategies that required large spending, but the key question was: should Zerodha deviate from its time-tested strategy of being a cost leader and not following the herd in the new post-pandemic environment? 

For NUS Business School: (Faculty only)
To obtain a free copy of the case, please contact Ms Kwok Siew Geok (bizksg@nus.edu.sg)

Publication Date: 28/08/2023
St. Luke’s Hospital (SLH) started out as a community hospital (CH) to help rehabilitate patients who had undergone or were undergoing treatment at acute-care hospitals. By 2016, SLH’s range of services had increased manifold, making SLH one of the few CHs with a comprehensive suite of services, such as rehabilitative, wound, and dementia care. Beyond inpatient care, SLH also offered outpatient and support services such as day-patient rehabilitation, diagnostics and laboratory services, and home-care services. To meet the growing health-care needs of an aging population, Singapore adopted the CH concept for its national health-care master plan, which projected a tripling in the number of CH beds over the next 10–15 years. As more new public CHs were established, especially in the western region of Singapore—where SLH used to operate as the only CH—SLH had to review its role and future direction. To sustain its competitive advantage, should the organization invest its resources into strengthening its existing capabilities, or diversify into new areas of growth? Tan had to provide his recommendation at the next quarterly board meeting.

For NUS Business School: (Faculty only)
To obtain a free copy of the case, please contact Ms Kwok Siew Geok (bizksg@nus.edu.sg)

The Employees Provident Fund (EPF) is Malaysia’s national private-sector pension program. It has grown into one of the largest pension funds in the world. The success of the EPF and Malaysia as a whole have brought new challenges. As life expectancy increases and the population ages, how can the EPF ensure adequate pension coverage and take care of Malaysians’ increasing retirement needs? As technology replaces the need for branches and customer-facing staff, how and where should the EPF channel its valuable human resources? How should the EPF optimally invest its ever-increasing funds? These are the questions the EPF’s chief strategy officer has to answer as he charts a way forward in the 21st century.

For NUS Business School: (Faculty only)
To obtain a free copy of the case, please contact Ms Kwok Siew Geok (bizksg@nus.edu.sg)

In the early days of 2021, GameStop, a US video game retailer, saw its share price sky-rocketed with no apparent rational explanation other than an army of small retail investors winning a trading war against a group of bearish hedge funds. At the peak of the battle, Robinhood, an online broker, suddenly stopped its customers from buying the shares of GameStop. This triggered a public outcry as the complex web of relationships between Robinhood and a few large financial institutions, among others, Citadel Securities and Melvin Capital Management, unfolded. Common market practices such as short selling and the payment for order flow (or PFOF) were also called into question. The case discusses how the stock trading ecosystem should and may change after this saga.

After merging with Commerce Bancorp Inc., TD Bank NA (TD Bank) continued to wow its customers by providing free lollipops, pens, and dog-friendly services and staying open longer than major competitors in the region. Through social media campaigns, it emphasized the importance of having a human touch in banking and showcased its appreciation for customers who had lent a helping hand to the community during the COVID-19 pandemic. It introduced innovative services such as curbside pickup for debit cards, and it increased its digital offerings by providing various digital financial services, platforms, and mobile applications (apps). It also enhanced its social media footprint and engagement with various hashtags such as #TDThanksYou. While TD Bank was doing all this, major competitors such as Bank of America and Wells Fargo responded with improved online and offline services. Having successfully differentiated itself as a bank with a human touch, TD Bank was forced to shutter 81 branches in the first quarter of 2021 due to the prolonged effects of the pandemic. Now, in September 2021, it has to recalibrate and provide more digital banking services as most of its customers are demanding the safety and convenience of digital banking. Can TD Bank build upon its slogan, “America’s Most Convenient Bank,” by consistently delivering humanized and seamless “phygital” banking experiences?

For NUS Business School: (Faculty only)
To obtain a free copy of the case, please contact Ms Kwok Siew Geok (bizksg@nus.edu.sg)

On June 24, 2021, Keppel Corporation (Keppel) and Sembcorp Marine Limited (Sembmarine) announced that they had signed a non-binding memorandum of understanding to enter into exclusive talks to merge Sembmarine and Keppel Offshore and Marine (Keppel O&M), a division of Keppel. Separately, but on the same day, Sembmarine also announced an intention to raise S$1.5 billion through a three-for-two renounceable rights issue (up to 18.83 billion new shares) at an exercise price of S$0.08 per share, which was a 35.7 per cent discount to the theoretical ex-rights price and a 58.1 per cent discount to the June 23 closing price of S$0.191.

Based on the share price reaction to the announcement of the restructuring, what was the market’s perception of the merger? Would it create value? Should Sembmarine raise capital via a rights issue and should shareholders subscribe to the rights issue?

For NUS Business School: (Faculty only)
To obtain a free copy of the case, please contact Ms Kwok Siew Geok (bizksg@nus.edu.sg)