German telecom giant Deutsche Telekom has announced a new partnership with US-based blockchain payments firm Celo.
Deutsche Telekom Enters DeFi Market
Deutsche Telkom has bought a significant share of Celo’s native utility tokens CELO to improve and engender the adoption of decentralized finance (DeFi) on a wide scale.
This investment is a roadmap in making DeFi tools and services more accessible to customers using smartphones.
Deutsche Telekom invested through its venture arm, the Telekom Innovation Pool (TIP).
However, the Bonn-based company did not stipulate how much it invested in the Celo ecosystem but stated that it is the first telecommunication company making the leap into DeFi.
In addition, Deutsche Telekom joins the Celo Alliance for Prosperity—a network of companies operating in the Celo ecosystem. A record number of 130 firms spread across different fields are members of the blockchain firm.
To further solidify its place in the blockchain ecosystem, Deutsche Telekom will be offering its T-Systems MMS subsidiary to serve as a validator while using the Open Telekom Cloud (OTC). This will allow it to provide secure financial services to mobile users and comply with the European regulatory framework for industry best practices.
Also, Deutsche Telekom will make its SMS API available for validators to send verification messages using the platform. This diverse group of SMS providers on the Celo platform would improve the security and reliability of the decentralized phone verification protocol.
Following the announcement, Celo co-founder Rene Reinsberg noted that the telecoms firm’s contributions would go a long way in developing the infrastructure of the blockchain company.
According to Reinsberg, the combination of owning CELO and building on its mobile-first platform will help accelerate mass adoption of digital assets and create safe, secure, and cost-effective payments for smartphone users everywhere.
Deutsche Telekom Joins An Elite Class Of Blockchain Enthusiasts
With the growing belief that cryptocurrencies have the intrinsic attribute of being a store of value, many traditional tech companies have gradually converted their cash reserves into virtual currencies.
The crypto-asset with the most institutional demand since crypto became a household name has been Bitcoin. The world’s oldest cryptocurrency with over $1 trillion market valuation has surged due to the perceived belief that it is a better store of value than gold.
Tech companies like Tesla Inc, MicroStrategy, Square, financial houses like WisdomTree, NYDIG, Grayscale, and a growing number of others have secured a BTC one way or the other.
With the digital asset set to revolutionize how we spend and use money, industry experts say that cryptocurrencies are here to stay. And with the technology underlying cryptocurrencies having myriad applications in vital sectors, Deutsche Telekom may be the catalyst to the influx of more telecoms into the blockchain ecosystem.