Chinese smartphone giant acquires stake in US-based blockchain startup

Dixintong Technology Group, which is a subsidiary of D. Phone has entered the blockchain space by acquiring a stake in the US blockchain-based startup Monsoon blockchain. Dixintong is one of the largest smartphone retailers in China.

The partnership between the two companies was officially done on January 7 at a stake that was done at a billion-dollar range according to reliable sources.  Despite the amount invested in the startup, it still maintains a minority stake. The partnership was timely as China as a country is working hard at promoting enterprise blockchain and the adoption of emerging technologies.

D. Phone dates back to 1993 when it was started and 2014 when it went public in Hong Kong while being backed up by telecom giants at that time such as Lenovo Group, TCL corporation, Qihoo 360 and China Telecom. One of the investors of Dixintong is Alibaba’s main rival JD.com that has a stake of 9% that’s an equivalent of $30 million. The company has a current market capitalization of up to $200 million.

Dixintong as a company is known for its striking performance. According to its 2018 performance report, the company did an annual sale of up to nine million cellphones across more than 1500 stores generating a net profit of up to $46 million for the year.

The main aim of the partnership for both D. Phone and Dixintong is to explore uses of the blockchain technology and its application in other emerging technologies such as 5G and IoT. Both companies are working on expanding their business operations in other industries.

China’s technological space

China is taking a lead as far as blockchain technology is concerned. This is boosted by the endorsement from the Chinese government which has made many companies to embrace the technology.

D. Phone and Dixintong are not the only companies in the telecommunication sector involved with Blockchain. China Mobile and China Telecom are involved in a blockchain infrastructure project that is backed up by the state.

The government of China has a huge budget for supporting blockchain. The Shanghai government, for example, has set aside millions of dollars for supporting public blockchain projects and set up an incubation center for blockchain-related startups.

Apart from Blockchain technology, the Chinese government, in general, is ahead technologically-wise. So far it is rolling out 5G across the country.

Monsoon blockchain

Monsoon blockchain is based on the Ethereum network and uses smart contracts to make sure that the marketplace s more efficient for cloud services. The company will have a peer to peer protocol that is blockchain-based and uses smart contracts to match companies to the best cloud services provider according to their needs. That means that companies will pay for what works for them. For Monsoon blockchain, their main target clients are enterprise clients at the moment.

Marcia

Marcia

Marcia is a real crypto enthusiast specialized in bitcoin and regulatory news.

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