Smartphone retailer acquires stake in U.S.-based Monsoon Blockchain
Tue, 14 Jan 2020, 10:30 am UTC
Dixintong Technology Group seems to have opened its doors to blockchain technology.
D.Phone’s subsidiary company Dixintong Technology Group has acquired a minority stake of U.S.-based blockchain company, Monsoon Blockchain, CoinDesk reported. According to sources who are familiar with the deal, the stake was sold at a nine-digit valuation and the agreement was signed on Jan. 7.
Dixintong not only sells mobile devices but also telecommunication services including data plans as a licensed virtual service operator. Meanwhile, Monsoon Blockchain primarily serves enterprise clients.
The alliance between the two companies comes after China is encouraging enterprises to adopt blockchain and emerging technologies. Many tech companies have explored blockchain technologies after Chinese President Jinping Xi encouraged the country to “seize opportunities” in the space. In fact, the stock prices for businesses related to the new technology have increased and Monsoon’s CEO Donald Basile can attest to this.
“When you have that level of endorsement from the government, everything moves much faster,” Basile said.
He suggested that Monsoon could assign a unique identity to each smartphone user on its blockchain platform to enable them to enjoy cheaper data services. The users’ data will be processed and stored in the network for the companies to analyze their business decision. In that way, they can offer each user the best deal possible.
Monsoon’s deal with Dixintong could potentially boost their consumers. The partnership will also give them access to billions of users in China.
“With the scale of people in China, you can have 20 million users in no time, so that’s a huge amount of computing and analytics needed to be harnessed,” he said.
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