Dear shareholders and friends of Animoca Brands,

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I am writing to you with reflections on my week in Davos, Switzerland, where our team engaged in pivotal conversations shaping the future of digital assets at the World Economic Forum (WEF) 2026 Annual Meeting, and engaged in discussions with partners and investors who are shaping the Web3 industry. This year’s theme, “A Spirit of Dialogue,” captured well what I observed on the ground in relation to the Web3 industry: the global discussion about crypto and blockchain has shifted decisively from theory to practical application, a transition in which Animoca Brands is not just participating but actively leading. 

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This year at Davos the discussions around crypto and tokenization were noticeably more frequent than last year - not only on panels inside the Congress Centre, but also during side meetings and informal conversations around the event. That increase in ambient discussion is a useful signal that more institutions are treating digital assets as something to evaluate operationally, and not just conceptually.

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Many of the conversations I noted were focused on where digital assets fit within existing regulatory, compliance, and risk frameworks, and on applications that can be implemented practically rather than serve as subjects for theoretical discussion. Stablecoins were frequently discussed as part of global payments infrastructure, including for cross‑border transfers and humanitarian distribution, where speed and traceability are of special importance. Tokenization also drew sustained interest, with examples including Franklin Templeton’s and Colossal’s discussions on tokenization related to species de‑extinction.

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This shift at Davos underscores a broader, more institutional acceptance of cryptocurrencies and blockchain technology. Growing institutional footprint and clearer regulatory frameworks for crypto and blockchain will help to broaden access to financial services and emphasize utility over speculation. This also means that digital assets will be evaluated increasingly on measurable outcomes, which in turn will reduce friction, improve transparency, and enable new forms of participation. Crypto and blockchain have moved beyond the ideological phase and are entering the realm of real-world application.

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Animoca Brands at the centre of dialogue

Animoca Brands hosted an exclusive Davos Accredited Programme on how tokenization is reshaping capital markets through 2030, bringing together global leaders including Hong Kong’s Financial Secretary, the Honourable Paul Chan, who highlighted Hong Kong’s proactive yet prudent approach to digital-asset development, guided by the principle of “same activity, same risk, same regulation”. 

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The programme also featured Franklin Templeton CEO Jenny Johnson and Colossal Biosciences CEO Ben Lamm, who shared insights on how tokenized assets and genomic-data analytics are driving transformation in capital markets. This gathering exemplified the serious, operational dialogue that is now taking place among policymakers and industry pioneers. 

On the WEF stage: championing the future of finance

I was honored to speak at WEF’s stakeholder dialogue “Where Are We on Stablecoins” alongside Jeremy Allaire, co-founder, chair and CEO of Circle, Dan Katz, first deputy managing director at the International Monetary Fund, Vera Songwe, chairperson and founder, Liquidity and Sustainability Facility, and Gerard Baker, editor at Wall Street Journal. This session addressed a significant shift that is now underway: in 2024 total stablecoin transaction volume reached US$27.6 trillion, surpassing the combined transaction volume of both Visa and Mastercard (source: World Economic Forum). In 2025 that number grew further to US$33 trillion (source: Bloomberg). 

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Stablecoins are evolving into a cornerstone of the global financial system. Their increasing role as essential infrastructure for digital payments is already transforming lives in places such as the Philippines and Indonesia, where stablecoins enable even low-wage earners and the unbanked to securely convert small earnings into savings. Not only do stablecoins help to increase inclusion in financial systems, but they also help to build financial literacy, foster stability, and give families with real economic agency. This type of practical, powerful, and empowering utility is precisely what we are working toward at Animoca Brands.

I was joined at Davos by various of my fellow Animocans, who participated in various engagements throughout a particularly prolific week. Evan Auyang, the group president of Animoca Brands, offered his insights during a Global Blockchain Business Council (GBBC) panel titled “What Are the Real Benefits for Financial Inclusion?”. Robby Yung, our CEO of Investments and the CEO of The Sandbox, participated in a panel titled “Emerging Tech for Good” at the Davos Leadership Gathering. He also shared his views at WEB3Hub Davos on the session “2026 Forecast: What Are We Investing In This Year?”

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Meanwhile, Alan Lau, our chief business officer, spoke on a panel discussion hosted by the Dubai Multi Commodities Centre (DMCC) on “Striking the Balance Between Innovation and Regulation to Attract Entrepreneurs and Capital”. He also shared a fireside chat with Brittany Kaiser, CEO of AlphaTON Capital, on the topic of “Powering the Gaming Flywheel on TON Network”.

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The dialogue in Davos this year clearly moved from “why” to “how” blockchain strategies, from payment infrastructure to asset tokenization, should be implemented. This trend plays directly to the strengths of our Company: with one of the largest portfolios in Web3 and our considerable operating experience, Animoca Brands is uniquely positioned to be one of the architects of the integration of Web3 into the new global economy. The growing institutional confidence and regulatory clarity we discussed on various occasions throughout the WEF 2026 Annual Meeting are the catalysts that will unlock the next wave of adoption and value creation for the Web3 ecosystem. As Animoca Brands continues to drive its strategic goals, including a proposed Nasdaq listing (see announcement of 03 November 2025), we are confident in both the power of our mission as well as our role in shaping a more inclusive digital future. 

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This year I returned from Davos more optimistic than ever before about the work we do, and I wish to thank our team, our partners, and our shareholders for the continued support that allows us to push for a more inclusive and equitable digital economy.

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With gratitude and optimism,

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Yat Siu
Co-Founder and Executive Chairman
Animoca Brands